A refinance cashback is a one-off payment from a new lender for moving your home loan, and it is only a good deal if the rate behind it is competitive too.
Only if the total cost over the years you hold the loan comes out lower: a few thousand dollars in your account is easy to see, which is why cashback works as marketing, but a slightly higher rate can outweigh it.
The number that matters more is the interest rate you pay for the years after the cash is spent, because a slightly higher rate can cost more than the cashback within a couple of years.
Part of the refinancing guide.
Yours could be the next one.
A free 30-minute call shows where you stand.
Book my free callCalculate your savings
Example rates only, not current advertised rates. Set both sliders to your own figures.
Over the remaining term, before switching costs and fees, we model those before recommending a move. Estimates only, not credit advice.
Confirm your numbers.
Charles and the team recently assisted me with the refinance of my investment property.
Charles and the team at links property finance recently assisted me with my purchase of my first property in Burwood. As a first home buyer, Charles made the process simple and easy. I would recommend Charles to all first home buyers
Charles looked after us really well and his knowledge gave us the confidence to purchase our property. He wasn’t pushy and always ensured we felt comfortable with the repayments.
Charles Touma, Mortgage Broker.
Leaving a lender usually involves a discharge fee from your current lender, government fees to register the discharge and the new mortgage, and sometimes an application or valuation fee from the new one. Our guide to mortgage discharge explains the process and the fees.
If you are on a fixed rate, a break cost can outweigh all of those.
A cashback offer elsewhere is a useful bargaining chip. Many lenders will reprice an existing loan when asked, and a lower rate with no switching costs can beat a cashback from a new lender.
Our guide to asking for a better rate sets out how to make that request.
A one-off cash payment a lender makes when you refinance to them, usually a few thousand dollars, paid after settlement once the loan meets the conditions of the offer.
Only if the rate is competitive as well. A cashback paired with a higher rate can cost more in extra interest than it pays out, often within two or three years. Comparing the total cost over the time you expect to keep the loan gives the straight answer.
With some lenders, yes, if you leave within a set period. Check the offer’s terms for a clawback before you switch, especially if you might sell or refinance again soon.
Sometimes: some offers include investment loans and many do not. Eligibility usually depends on the loan purpose, the repayment type, the minimum loan size and the LVR.
Yes, usually: many cashback offers are available through brokers as well as direct, though some are limited to one channel. Charles compares cashback and non-cashback options side by side so you can see which costs less overall.
Before switching, the refinance checklist lists what to gather, and the refinance savings calculator shows what a lower rate is worth.
Charles can put the cashback, the rate and the switching costs side by side over the years you expect to keep the loan.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit or financial advice. Cashback offers, their conditions and their availability change frequently and vary by lender. Costs and savings are confirmed in an assessment.
