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Refinance Rebates

Are you planning to apply for a home loan? Did you know that some banks will actually give you money to refinance your loan to them?

You can benefit from the intense competition between banks by switching to a bank that has a competitive interest rate and a cash rebate.

Current special offers

One of our lenders is offering a rebate of $1,500 for people who refinance their mortgage to this lender. This rebate is on offer until further notice.

There’s also a Lenders Mortgage Insurance (LMI) refund if you’re borrowing no more than 85% of the purchase price.

The qualifying criteria are:

  • Available for both investment and owner occupied.
  • Your loan must be for at least $250,000.
  • Your loan must be under the lender’s professional package.
  • Pre-approvals, loan increases and internal refinances are not eligible.
  • Only one rebate is permitted per application.

Please call us on 1300 889 743 or enquire online to apply for to refinance to this lender. You may also like to view our current discounted interest rates.

Investor rebate

One of our lenders is offering a rebate of $1200 for investment home loans.

To be eligible:

  • The property must in either Sydney, Canberra, Brisbane, Melbourne, Adelaide and Perth, and located within eligible postcodes (please call us for more information).
  • You cannot borrow more than 90% of the property value.
  • Minimum $250,000 new money for an investment home loan.
  • For multiple securities, at least one security must be located in one of the eligible postcodes.
  • Offer available for a limited only.

When will my rebate be paid?

In most cases the bank will pay your rebate within a month of your loan being advanced. The exact date can vary between different lenders.

Banks tend to pay the refinance rebate into your nominated transaction account whereas non-bank lenders typically deposit the funds into your loan account or mail you a cheque.

Is it worthwhile to refinance?

If you are refinancing to borrow additional money to invest, renovate or build then there is no best or worst time to refinance.

However if you are refinancing to save money then it is best not to refinance if:

The people who get the biggest reduction in their interest rate from refinancing are those that have had their current home loan for more than three years. This is because older mortgages tend to have uncompetitive interest rates.

Hidden eligibility criteria

Some people apply to refinance to receive a lower interest rate and a rebate, however they end up missing out on the rebate because of a hidden catch in the terms and conditions of the offer.

The most common catches are:

  • Your loan is not for the required purpose (e.g. construction loans may not be permitted)
  • You do not have a transaction account with the lender
  • Your application is delayed and misses the cut off date

By using a good mortgage broker you can be sure that you are eligible for the offer before you switch lenders unnecessarily.

The bank may forget to pay you!

The computer systems used by the banks do not normally have a function built into them to pay rebates to customers. These cash back offers are usually processed manually.

As a result it is common for small mistakes to occur and the rebate not to be paid. When your loan is advanced our mortgage brokers will set a reminder to check with you a month later to confirm that you have received your rebate.

Other rebate types

From time to time our banks may offer other special offers for people switching loans. These can range from special discounts on application fees, discounted LMI or the refund of the first annual fee for your professional package.

Please call us on 1300 889 743 to find out about these other offers.

Why do banks offer them?

Banks make these special offers to win market share during slow periods or known times when one type of borrower is very active.

For example in spring it is common for some banks to give a first home buyer rebate to try to capture more of the market during the spring home buying season. Whereas during quiet periods they will offer refinance rebates to attract people who are looking to save money on their home loan.

Contact a mortgage broker

Our specialist mortgage brokers know which banks have current special offers and will know which lender has the lowest cost loan for your situation.

We don’t just look at the available rebates, we consider the interest rate and LMI premium to make sure that you get the best deal possible.

Please call us on 1300 889 743 or enquire online to find out how we can help you to save money on your home loan.

  • Mitchell

    I’ve heard recently about rebate in refinance. Can I get a rebate even in case of Internal refinance?

  • Hi Mitchell,

    As the bank does not make money from internal refinance, they don’t provide the rebate to existing clients. Usually the rebates are for new clients only.

  • Bugnion

    I want to refinance my home loan, which is now at 80% LVR and consolidate a $25k car loan. I’m a PAYG earning over $110k per annum. I want to access the funds to purchase an investment property, which I have yet to confirm although I’m expecting to purchase for around $600k.

  • Hey Bugnion,

    We will need the complete details and collect all supporting docs, and based on your loan needs and situational details, we can then make a recommendation. You can schedule in a meeting with one of our expert mortgage brokers or discuss it directly over the phone by calling 1300 889 743.