Did you know that some banks will actually give you money to refinance your mortgage with them?
You can benefit from the intense competition between banks by switching to a lender that has a competitive interest rate and a cash rebate.
Current special offers
$4,000 refinance cashback
One of our lenders is offering a $4,000 cash bonus for a refinance of $250,000 or more for drawdowns made by 30 June 2020.
The $4,000 refinance cashback is:
- Limited to one bonus per customer;
- Only available to individual borrowers includes both owner-occupiers and residential investors;
- Not available to customers refinancing from one of their affiliated/flagship banks.
In addition, a different lender is offering a $4,000 refinance cashback for the first application and a bonus $2,000 for every additional property refinanced for applications received between 1 February 2020 to 31 March 2020 and settled by 31 May 2020.
$3,500 refinance rebate
One of our major banks from our panel is currently offering both a $2,500 and a $3,500 rebate depending your loan amount.
These rebates are on offer to home loan applications submitted by submitted by 30 June 2020, and drawn down by 30 September 2020.
- $1,500 cashback available for loan amount of at least $150,000 but less than $250,000.
- $2,500 cashback available for loan amounts between $250,000 and $700,000.
- $3,500 cashback available for loan amounts over $700,000.
- Available for both owner-occupied and investment home loans.
- Available for principle and interest (P&I) and interest only loans.
- Available to new customers as well as existing customers with this bank that are refinancing an additional amount from another lender (total new lending must be at least $250,000)
- Limit of one refinance rebate per customer no matter the number of loans being refinanced e.g. if you are refinancing two $250,000 loan amounts, you can only receive one $2,500 rebate.
- Limit of one refinance rebate in a 12-month period.
- Rebate not available for line of credit accounts.
- The bank will credit your cashback within 14 days of receiving a completed refinance rebate form and confirming that you are, in fact, eligible for the rebate.
$3,000 refinance rebate per security
One of our major banks is offering a $3,000 refinance rebate per security for applications submitted before 29 February 2020 and settled before 31 May 2020.
That means if you have five properties, you can potentially get $15,000 in rebates.
- A $3,000 cashback is paid for every property that is refinanced with the bank.
- Applicants must open/have a transaction account linked to the home loan from the same bank. This account must be kept open for at least 60 days after settlement for the cashback to be paid into.
- Applicant’s home loan repayments must be directly debited/paid from this transaction account.
- Must include the lender’s home loan package. A $395 annual package fee applies.
- Minimum lending of $250,000 per property is required.
- Only available for owner-occupiers (principal and interest repayment) and residential investment loans.
- Owner-occupiers with interest-only loans.
- Portfolio loans.
- Internal refinances or switching within the bank’s flagship brand.
- Non-resident borrowers.
You can cross-collateralise the loan, as long as the average loan amount is $250,000 or more per security, you will eligible for the rebate.
Please call us on 1300 889 743 or enquire online to find out if you qualify.
$2,000 refinance rebate per security
With a loan balance of $250,000 or higher, you may qualify for a $2,000 refinance cashback with a couple of lenders including a major lender.
This rebate is on offer to home loan applications submitted by 30 April 2020 and settled by 30 June 2020.
A $2,000 rebate will be paid for every security that is refinanced with one of the lender.
- Only available on owner-occupied home loans.
- Only available for principle and interest repayments (not interest only).
- Top-up amounts or any new money you may want to borrow will not count towards the $250,000 minimum loan balance amount.
- The mortgage you are refinancing must be from another financial institution, not a lender under this bank’s flagship brand.
- The lender will credit the $2,000 cashback to your linked transaction account within two weeks of the loan transfer.
Please call us on 1300 889 743 or enquire online to find out if you qualify.
When will my rebate be paid?
In most cases the bank will pay your rebate within a month of your loan being advanced. Sometimes it can be up to 2 months.
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.
Learn more about the benefits of refinancing your home loan and how much you can save.
However, if you are refinancing to save money then it is best not to refinance if:
- Your loan is for more than 80% of the property value.
- You have missed repayments on your home loan recently.
- Your loan has a fixed interest rate.
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.