Borrowers who refinance are those who want to reduce household costs and take advantage of lower rates. If this sounds like you, a cashback reward program can be hugely attractive for a short-term gain or immediate cash flow, especially during the COVID-19 hardship.
Lenders have been competing for market share by offering up to $4000 cashback for new borrowers and refinancers. They promise cash deposited into your bank account when the loan settles to cover switching costs. But is the refinance rebate a good deal?
Is Refinance Cashback Worth it?
The answer to this depends on the product. It is important not to just assume that because you have a cashback deal you’ll be better off over the long term, as factors such as the interest rates between lenders and fees associated with refinancing need to be considered. It is best to speak with a mortgage broker to know for sure if you’re getting a great deal.
Be mindful of whether the home loan product itself is a good deal, regardless of the cashback. Think of this: Would the loan product still be right for you if there were no refinance rebate offer?
Is The Refinance Rebate Offer For A Short Period?
Yes, cashbacks are offered for a limited time. The lenders specify that you have to apply by a certain date and have the loan settled by a certain date. For the latest offers this month, please check our page on refinance rebates and cashback.
Enquire with Home Loan Experts today, and we will do the hard work of home loan comparison for you. We will help you snap up a better rate and the right home loan package. Please call us on 1300 889 743 or fill in our free assessment form to consult with a Home Loan Expert broker.
Is A Cashback Deal On A Home Loan Better Than A Low Rate?
A cashback offer can sound very tempting. But your home loan is a long-term financial commitment, so it makes good sense to know whether it’s that cash payment or a lower interest rate that will make you better off over time.
A lower interest rate may save you more than a cashback offer in most circumstances. Other features like an offset account and flexible repayment options also help you save money.
Should you get a lower rate or refinance cashback? Fill in our enquiry form and we will help you crunch the numbers and find the suitable solution.
Will A Refinance Rebate Help Me Save Money?
It depends on the length of your loan term. You can use our calculator to find out how much you can save. We can also connect you with a mortgage expert who can help you calculate the amount.
A larger loan with a smaller cashback is unlikely to be beneficial. A lower loan rate is better if you’re borrowing a large amount. If you have a small loan balance that you intend to keep for two years, then refinance cashback is probably the best option.
Does Cashback Apply To Both Fixed And Variable Home Loans?
Each lender has its own eligibility requirements when it comes to a refinance cashback offer. However, many include the option to refinance to a fixed or variable rate home loan.
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