Finder makes money from featured partners, but editorial opinions are our own.

Sweet savings: Homeowners pocket $476 million in cashback offers

Posted:
News
Australians investigating finances_Canva_1800x1000

Australian mortgage holders have received millions of dollars in home loan cashbacks in the past two years, according to new research by Finder.

A Finder survey of 1,096 respondents – 287 of whom have a mortgage – revealed 5% have taken out or refinanced a home loan to snag a cashback offer over the past 24 months.

That's 165,000 Aussie mortgage holders who have pocketed some cash from refinancing or taking out a new home loan.

The average mortgagor who received a home loan cashback offer pocketed $2,888 – equivalent to $476 million nationwide.

A staggering 40% of mortgage holders say they struggled to pay their mortgage in July, according to Finder's Consumer Sentiment Tracker.

That's up from 26% this time last year, and 21% in July 2021.

Almost 2 in 3 experts (64%) from Finder's RBA Cash Rate Survey™ expect the proportion of households in mortgage stress to peak between August and December this year.

Richard Whitten, home loans expert at Finder, said refinancing can be a lifeline for cash-strapped borrowers.

"Millions of homeowners are struggling to make their repayments, so a cashback sweetener for refinancing is becoming even more attractive.

"If you can lock in a cheaper interest rate and secure a cashback, it can add up to significant savings.

"Just remember if the loan itself isn't a good product for you, then the bonus simply isn't worth it. The loan's interest rate, fees and features are more important factors," Whitten said.

The Finder data shows 11% of mortgage holders had switched their home loan in the past two years without getting a cash bonus.

Men (9%) were three times as likely as women (3%) to have switched home loans and received a cashback bonus.

However, women secured a higher cash bonus on average of $3,800 compared to $2,431 for men.

The highest cashback offer on Finder at the moment is up to $4,000.

The research found the majority of mortgage holders (84%) hadn't taken out or switched a home loan in the past two years because of a cashback offer.

Whitten urged homeowners to see if they can negotiate a better deal with their lender.

"Even if you refinanced in 2022, it doesn't hurt to review your options and see if you could still save more.

"If you have a fixed home loan and still have a majority of the term to go, you may have to pay a break fee to get out of the loan contract, but depending on how much you will save, this may still be worth it."

Have you taken out or switched a home loan in the last 2 years because of a cashback offer?
Yes5%
No, but I have switched my home loan in the last 2 years11%
No84%
Source: Finder survey of 287 mortgage holders, July 2023

Compare some of the best home loan cashback offers here.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site