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.
Please call our mortgage brokers at 1300 889 743 or fill in our online enquiry form to see if you should refinance your home loan during the COVID-19 pandemic.
$4,000 and $3,000 refinance rebates
One of our major lenders is currently offering a:
- $4,000 rebate for refinances where the loan amount is greater than $750,000 or more.
- $3,000 rebate for refinances where the loan amount is less than $750,000 but more than $350,000.
These offers are valid for applications that are submitted by 31 August 2021 and settled by 30 November 2021.
$3,000 refinance cashback
This $3,000 refinance cashback offer is available for applications submitted by 31st August 2021 and settled by 30 November 2021.
- To be eligible, the total loan amount must be at least $250,000 with a LVR less than 90%.
- The offer is limited to owner occupier and investment property loans.
- Payment will be made into the transaction account you hold or open with the bank within 60 days of the settlement date.
- The offer is also available with some of the bank’s flagship brands.
This offer can be amended and/or withdrawn by the lender at any time without notice.
$3,000 refinance cashback
Another lender on our panel is offering a refinance cashback of up to $3,000 for applications submitted by 30 September 2021 and settled by 31 December 2021.
The eligibility crieria are as follows:
- The minimum loan amount must be at least $500,000.
- LVR must be less than or equal to 100%.
- Limited to one $3,000 refinance cashback per application.
$3,000 refinance rebate
This $3,000 refinance cashback offer is available for applications submitted by 29 August 2021 and settled by 26 November 2021.
To be eligible:
- The total loan amount must be at least $300,000.
- The loan to value ratio must not be over 80% of the property value.
- You must open an account with the bank, where the $3,000 cash back payment will be made within 60 days of settlement.
- Not available for interest-only loans and loans refinanced from within the bank’s flagship brand.
- Available for owner-occupier loans (principal & interest repayments only) and all residential investment loans.
- Minimum Loan to Value Ratio (LVR) of less than 90% of the property value.
- Minimum loan size of $250,000.
- $395 annual package fee applies.
- Applicants must have a transaction account linked to the home loan at the time of settlement. The transaction account must be kept open for at least 60 days after settlement. The home loan repayments must be direct debited from this transaction account.
- Available for refinances of an existing home loan of $250,000 or more.
- Available to applicants who are owner-occupiers or investors and excludes First Home Loan Deposit Scheme loans, non-residents, businesses, trusts and other non-natural persons.
- Only available once per customer within the offer period, e.g. if a customer refinances more than one loan, they will only receive the cash bonus once.
- Read the fine print carefully.
- Is the refinance cashback per loan, per property or is there a max rebate of one per customer? The way banks calculate the rebate is sometimes based on each property so some of our investors have received over $10,000 in rebates when refinancing their portfolio.
- Make sure you get the loan advanced before the due date.
- Look at the total cost of the loan over four years less any rebate. Whether or not a refinance is worth it depends on the cost of the loan including the rate, fees and deducting any rebate over the term that a borrower will keep it for, which is usually four years.
- 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.
- 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.
$3,000 in refinance rebate
One of our major banks has introduced a $3,000 refinance rebate.
This offer is available for applications received by 31 August 2021 and settled by 30 November 2021.
The eligibility criteria for the rebate are as follows:
Offer can be varied or withdrawn at any time. Please call us on 1300 889 743 or enquire online to find out if you qualify.
$2,000 refinance rebates
With a loan balance of $250,000 or higher, you may qualify for a $2,000 refinance cashback with a few of our lenders including a major lender.
Note: Seven lenders on our panel have announced a $2,000 cash bonus for refinances.
This offer is:
Please note that terms, conditions, fees, charges, eligibility criteria and lending criteria apply. Cash offers may be varied or withdrawn at any time without notice by the bank.
Please call us on 1300 889 743 or enquire online to find out if you qualify.
Golden tips from our brokers
Borrowers should be careful with the fine print as there’s usually a lot of conditions such as interest-only loans being ineligible or the loan needing to be advanced before the date that the offer expires.
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:
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.
Refinance Rebates FAQs
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.
Why do banks offer refinance rebates?
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.
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.
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:
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.
Unsure where to begin? Have a look at our guide to the refinance process.
Also, many people choose a fixed rate home loan, and there may be break fees associated with exiting the loan. There are low exit fees for variable rate loans. Overall it’s not an ethical approach to refinance repeatedly for cash back offers. It’s best to refinance when there are other good reasons to do so, such as needing more money or seeking a lower interest rate.
Can I get a refinance cashback and then refinance again?
Technically yes, you can. However, lenders are wary of this behaviour and may decline your next application. Each application leaves an enquiry on your credit file, too many enquiries and you’ll be seen as a high-risk borrower.
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.