A refinance cash back offer is a rebate or an incentive some banks and lenders will pay new clients if you refinance your existing home loan to them.

Each bank or lender that offers these refinance cash back offers have different conditions that need to be met to qualify for a refinance cash back. The cash back offers are generally available for both owner occupied and investment home loans. Some conditions may include –

• The loan must have principle and interest repayments (not interest only repayments)
• The loan must meet a minimum home loan amount threshold with the lender. Generally a cash back offer maybe available for loans refinanced that are greater than $250,000, but can vary between the banks.
• You may also need to hold a transaction / savings account with the bank, as this is where the cash back is paid into.
• The bank may require the loan to be lower than 80% of the property value, some lenders may consider a cash back offer for loans below 90% of the property value.

The actual amount of the refinance cash back offer paid to you varies between banks and lenders. As of September 2022, the average cash back offer is $2,000, but there are banks offering up to $4,000 for loans above $250,000. There is one Bank at the moment offering a $5,000 refinance cash back offer for home loans that are over $850,000.

These refinance cash back offers are changing all the time and as of September 2022 these are valid offers.

If you are thinking about refinancing your home loan, there are some costs involved, so it is worth speaking to a mortgage broker to check what costs are involved.

The costs to leave your current home loan provider will depend on the bank exit fee costs, or if your home loan is a fixed rate home loan, where the exit fees maybe higher, than a variable rate home loan.

Another cost maybe lenders mortgage insurance. If your current home loan is more than 80% of your property value, you may pay a new lenders mortgage insurance fee with a different bank. This fee can be expensive, depending on how much your loan is, and the loan to property value.

It may not be worth refinancing if the fees to refinance are more than any cash back offer, and any possible interest rate savings with a new home loan. 

If you are thinking of refinancing your current home loan it would be worth speaking to a mortgage broker first, to work out and understand the fees to refinance and any potential savings with a better interest rate. This way you can make an informed decision on whether refinancing your home loan is an option you would like to consider.

If you would like some more information about refinance cash back offers for your home loan, please contact Perth Mortgage Broker Group , or call Troy on 0411 229 602, 7 days a week