With interest rates higher than they have been for more than a decade, the option to refinance your home loan to a lower interest rate should be one you consider. Some lenders are still offering cashback bonuses for refinancing, though these offers will be ending soon.
This article outlines the pros and cons of cashback refinancing deals, as well as the banks that are still offering cash back in the market.
The pros and cons of cashback refinancing
Cashback refinancing has its pros and cons.
Pros:
- Like any type of refinancing, you may be able to refinance your home loan to a lower interest rate with a cashback offer. This can enable you to lower your repayments to make them more affordable or pay your home loan off faster.
- Refinancing can allow you to consolidate multiple debts at higher interest rates into a single, lower-interest home loan. This can benefit you significantly in the long run if you have large, high-interest debts. Once again, it can enable you to lower your repayments or pay your home loan off faster.
- Refinancing costs on an investment property loan may be tax-deductible (unlike refinancing costs on home loans).
Cons:
- There may be costs involved with ending your existing loan early and taking out your refinanced loan. The total benefits of refinancing (including the cashback amount) should outweigh the costs.
Cashback refinancing offers still available
Banks such as Commonwealth Bank and National Australia Bank have stopped cashback offers, however, there are still some cashback refinancing offers still available in the market, which include:
- St George ($2,000, available until 31 August 2023).
- Bank of South Australia ($2,000, available until 31 August 2023).
- Bank of Melbourne ($2,000, available until 31 August 2023).
- Bank of Queensland ($3,000, no published offer expiry date but it could end at any time).
- ME Bank ($4,000, no published offer expiry date but it could end at any time).
- ANZ ($4,000, no published offer expiry date but it could end at any time).
You do not have to be a client of any of these banks to potentially qualify for any of these cashback offers, but each bank has their own eligibility criteria.
What you can do
Whether a cashback refinancing offer is suitable for you depends on your individual financial situation, needs and goals. You can reach out to our lending and finance team at Wilson Pateras who can help you to evaluate cashback refinancing offers from lenders and whether or not there is a better deal for your circumstances.
We work for our clients, not lenders. We also understand the lending criteria of different lenders, so we can help you to prepare your refinancing application.
Book a meeting with our Lending advisor to discuss your loan options.
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