Home loan cashback offers

How we calculate Home Loan Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These home loans offer low costs, coupled with a host of features, giving the best overall value.

7+

Great

These home loans may have slightly higher interest rates or fewer features but overall, a competitive offering.

5+

Standard

Usually the home loans would offer above average rates. They may still include some competitive features.

0+

Basic

Higher costs and/or fewer features.

Every home loan cashback offer in Australia in right now

Right now there are 13 home loan cashbacks on offer in Australia, plus several more in the form of Qantas Points offers or gift cards (including a Finder Reward with Unloan).

*Reduce does offer a $10,000 cashback but only if your loan is over $2 million.

Other special home loan offers

• BankWAW is offering a $2,000 gift card for borrowers who refinance to a Flexible Choice loan.
• Commonwealth Bank is offering Qantas Points to borrowers who take out a Digi Home Loan of $300,000 or more. Borrowers can get between 100,000 and 300,000 Qantas Points. Those points are worth thousands of dollars or more depending on how you redeem them.

What is cashback on a home loan?

Some lenders give you a cashback when you get a home loan with them. Cashbacks are usually worth between $1,000 and $4,000 and are a way of encouraging borrowers to switch to the lender from a competitor.

Many banks and lenders offer cashback specifically for borrowers who are refinancing their home loan. But some are available for new borrowers and first home buyers.

How do home loan cashbacks work?

A home loan cashback is normally deposited into offset account or transaction account with the same lender.

Some lenders offer a gift card instead.

There is no tax payable on these amounts and you can choose to spend them however you wish. Cashbacks can have some conditions attached that borrowers need to meet, like:

• Minimum loan amount. Most cashback offers apply for loans $250k and above. If you're refinancing a small loan amount, say $100,000, you might not qualify.
• Apply before the deadline. Cashbacks are usually offered for a limited time, with lenders specifying that you have to apply by a certain date and have the loan settled by a certain date.
• Loan purpose. Some cashback offers are limited to refinancers, or are specific to homebuyers only (and not investors).

You need to meet the eligibility criteria, such as the type of loan and the amount you're borrowing. Once the cashback is approved, your lender will deposit it into your bank account.

How to compare cashback home loans

Always look at the following when examining home loan special offers to make sure it's the right loan for you outside of the offer:

• Interest rate. Does this loan have a competitive interest rate, in line with the other cheapest rates in the market? Will it save you money even without the sign-up bonus?
• Fine print. If the loan offers a special lower interest rate, is that just for the first year, or ongoing? Will the loan revert to a higher rate?
• Loan features. The sign-up offer should not be the only reason you choose a certain home loan. Take into account all the features offered by the loan and whether they suit your needs.

Expert insight: The risks of cashbacks

"Cashbacks were initially offered to cover the switching costs associated with refinancing. Whilst these are a great offer, it shouldn't be the sole reason to refinance your loan or pick a product provider.
When we assess the suitability of a lender, we take into account your circumstances and match the right lending policy before anything else – then it is rates and fees and finally we look at cashback opportunities. We have seen many clients get into the wrong products because they were lured by a $2,000 sugar hit. These products can end up being tens of thousands of dollars more expensive in the long run."

Matt Turner

Mortgage broker, GSC Finance Solutions

When a special offer doesn't make sense

Here's a hypothetical example of a refinance cashback offer that looks enticing but doesn't really benefit the borrower.

• Your current loan: You're currently on a 6.25% interest rate with $300,000 left on your loan.
• The offer: You see a package home loan with a $2,000 cashback offer and a lower 5.90% interest rate.
• The comparison: You look around and see a few loans with a similar 5.90% rate but no cashback offer, so you go for the one that gives you $2,000. Makes sense, right?

But then you realise it's a package loan, so you get a credit card and an offset account with the loan, plus a home insurance policy. This all comes with an extra $400 annual package fee.

But you don't want the offset account or the credit card, and you're currently getting a better deal on your insurance elsewhere. And that annual package fee? Well, in just 5 years it's eaten up the full $2,000 cash back.

If you switch to a similar loan with a 5.90% rate that doesn't have a $400 annual package fee, you'll be better off. Of course, if you made use of all the products in the package then the fee might be a small price to pay for the convenience of having all your products with one institution.

It all depends on your needs.

What other kind of special offers do lenders provide?

Fee reduction or waived fees

Many lenders will waive or reduce fees for a limited time, so it's always worth asking the question. Given that application fees can cost $600 or more, this is a decent saving. As with home loan cashbacks, fee waivers usually have exclusions and eligibility criteria, such as time limits and minimum loan amounts.

Discounted interest rates

Discounted rates can save you a decent amount of money in the early stages of your loan. Be sure to compare the discount rate to other offers and watch out for the end of the offer period, when the rate will rise.

Package deals

Some lenders allow you to package things like credit cards, savings accounts and offset accounts with your home loan account. You can save by paying a combined annual fee for all products you've chosen to package, as well as enjoy the convenience of having all of your finances in one location.

Frequent flyer points

Some lenders have partnerships with frequent flyer rewards programs. The points you can gain from these loans can equal enough to cover an international flight. You can learn more about frequent flyer loans in our guide.

Expert insight: Can you still get cashbacks?

"Cashback offers are still available and can provide a financial boost during the settlement process. However, it's important to weigh the overall loan cost and terms, as cashback deals sometimes come with higher interest rates or fees. Always compare the long-term savings against the upfront reward."

Brett Sutton

Mortgage broker, Two Red Shoes

Frequently asked questions about home loan cashback offers

• Can you get a cashback when you refinance?

  Yes. Most home loan cashback offers on the market are targeted at refinancers. That is, borrowers who already have a home loan and are looking to switch lender.

• What are the disadvantages of cash back?

  A home loan cashback gives you extra money. It's a tempting offer, especially if you were thinking about refinancing anyway.

  There's only a downside if you focus too much on they cash and forget about the loan itself. In other words, make sure it's a suitable home loan for your needs that has a competitive interest rate and minimal fees.

• Can I get a cashback as a homebuyer?

  Yes. While most cashbacks are for refinancers, many current offers include purchasers as well (people buying a home who need a new loan). There are some cashbacks that are only for first home buyers.

• How long does it take to get a cashback paid out?

  This varies by lender but you may have to wait between 30 and 120 days from loan settlement to get the cashback paid into your account.

• Is it worth refinancing frequently to get multiple cashbacks?

  Lenders (and mortgage brokers) really hate this. They want borrowers that stick around for years. But you can switch frequently to take advantage of cashback offers.

  But there are some difficulties with doing. You lender may have a clawback clause in the contract that says you have to pay back the cash if you refinance in the first 12 to 24 months.

  And there are costs that come with refinancing, such as mortgage registration fees, discharge fees and loan application fees. This eats into your cashback pretty quickly.

  Also, starting a new 30-year loan term every year is a bad idea. You end up paying more interest up front and delaying the actual repayment of your loan.

What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full breakdown

To make sure you get accurate and helpful information, this guide has been edited by Rebecca Pike and reviewed by John Pidgeon, a member of Finder's Editorial Review Board.

Written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 708 Finder guides across topics including:

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