New year, new home loan: 34 lenders offering cashback deals in … – RateCity

This new year the Reserve Bank of Australia has given all mortgage holders and first home buyers the gift of no meetings to set the cash rate. For the first time since May 2022, homeowners have had a break from rising interest rates.

While the country enjoys a break from cash rate increases, you may be working on your New Year’s Resolution to refinance to a lower interest rate loan and free up room in your budget.

If you are considering refinancing in 2023, or looking to apply for a new home loan, you may as well consider pocketing some extra cash in the process. This is where cashback home loan deals come in handy.

This month, there are 34 lenders offering cashback deals for both refinancers and new buyers. These deals range from $1,500 to $10,000, depending on the size of your home loan. 

And if cash-in-hand isn’t your thing, waived Lenders Mortgage Insurance is also being offered as a sign-up bonus by one Australian lender.

Let’s explore the cashback deals for home loans on offer in January 2023. 

What cashback deals are on offer this month?

  • Cashback deals

In January, there are 34 lenders offering cash back home loan deals to eligible customers. These offers are valued between $1,500 all the way up to $10,000, depending on the value of your mortgage and your loan-to-value ratio (LVR).

The average cashback deal for mortgages tends to sit around $2,000 – $3,000. In the current higher-inflation environment, a few extra thousand dollars in your back pocket could go a long way.

Refinancers typically use cashback deals to cover the costs of switching, which can cost a few hundred dollars and more, depending on the fees charged by your lenders. However, these funds are usually paid into your bank account, so you can choose to spend it on a new appliance or home upgrade, or to chip away at your loan principal.

The majority of these are, once again, available for refinancers. However, this month, three lenders are also offering cashback deals to new purchasers as well, including:

Note: Below cashback products based on a 25-year, $300,000 mortgage with an LVR of 60%. For more options, or to compare mortgages based on your loan details, please visit our cashback page.

  • Reduced Lenders Mortgage Insurance

Lender’s Mortgage Insurance can be one of the most expensive home loan costs if you have not saved a deposit of 20%, or if you are refinancing with a LVR above 80%. Luckily, this month there is one lender offering waived LMI to eligible customers.

LMI is charged to customers by the lenders to protect the lender from the higher risk of default on the mortgage, due to you having a smaller deposit or less equity than is considered “ideal”. This insurance can climb into the tens of thousands of dollars range, making it one of the most expensive upfront home ownership costs.

This January, St. George is offering waived or reduced LMI to eligible first home buyers:

  • For St. George customers, the offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning on making principal and interest repayments.

Keep in mind that there is more to a home loan than a deal being offered to you, and it’s always important to compare the interest rates, fees, and features of a loan before applying. 

For more information on whether one of the above loans may suit your finances, consider using our Home Loan Calculator to see how potential repayments could fit in your budget.

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