Refinancing your home loan can be a great way to secure a lower interest rate, reduce monthly repayments, or access better loan features. But with many lenders offering cashback deals as an incentive to switch, the big question remains: Are refinance cashback deals worth it? Let’s break it down.

What Is the Average Monthly Mortgage Repayment in Australia?

If you’re wondering how your mortgage compares, Canstar crunched the numbers based on Australian Bureau of Statistics (ABS) lending indicators. They found that the average mortgage repayment in Australia is around $4,113 a month. This assumes an interest rate of 6.88%, based on the current average variable rate on Canstar’s database, and a loan amount of $600,000. If you haven’t updated your home loan in a while, or if your repayments are creeping above average, refinancing to a cheaper rate might be a solution to save money.

What Are Refinance Cashback Deals?

A refinance cashback deal is a financial incentive offered by lenders to encourage borrowers to switch home loans. These cashbacks typically range from $1,000 to $3,000 (or more) and are credited to your account after settlement. The amount usually depends on the loan size and the lender’s terms.

Pros of Refinance Cashback Deals

1. Instant Financial Boost – The cashback can help cover refinancing costs such as application fees, valuation fees, and break costs.
2. Lower Repayments – If you secure a lower interest rate along with the cashback, you could save significantly over time.
3. Offset Moving Costs – If you’re refinancing due to a life change (e.g., upgrading or downsizing your home), the cashback can assist with related expenses.
4. Debt Consolidation Benefits – Some borrowers use cashback incentives to pay down other debts or boost their savings.

Cons of Refinance Cashback Deals

1. Higher Interest Rates – Some cashback deals come with slightly higher interest rates, which may offset any upfront benefits.
2. Hidden Fees – Some lenders charge additional fees that could eat into your cashback gains.
3. Lock-in Periods – Many lenders require you to stay with them for a set period (e.g., 12–24 months) to retain the cashback, limiting refinancing flexibility.
4. Not Always the Best Deal – A lower interest rate with no cashback may save you more over time compared to a cashback deal with a higher rate.

Limited-Time Refinance Cashback Offers – Up to $3,000!

Some lenders offer limited-time refinance cashback deals of up to $3,000 for eligible borrowers. Terms and criteria apply, including minimum loan amounts and lock-in periods.

If you’re considering refinancing, make sure to compare the full benefits beyond just the cashback offer. (Source: Canstar)

Home loan cashback offers typically involve a bank or lender providing an incentive to take out one of their products. The cashback may be credited in cash, deducted from fees, or provided as gift cards for specific stores or brands.

Here’s a selection of home loan providers offering cashback deals at the time of writing. Please note these offers may be withdrawn at any time.

ANZ – $2,000 Refinance Cashback

ANZ is offering $2,000 cashback when you refinance an eligible home loan. To qualify, your loan must have an LVR of up to 80%, and you must hold an ANZ Access Advantage, ANZ One Offset, or ANZ Plus account in your name at the time of settlement. Additional eligibility requirements and T&Cs apply.

Expires: Offer valid until further notice.

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BankVic – Up to $3,000 Cashback for Healthcare, Police, and Emergency Services Workers

BankVic is offering a $2,000 cashback for healthcare workers refinancing or purchasing a home loan with a loan amount of at least $200,000 and an LVR of 80% or less. Police and emergency services workers can access up to $3,000 cashback for loans of $350,000 or more with an LVR of 80% or less. Available to both owner-occupiers and refinancers. Applications must be received by 18 February 2025 and settled by 30 April 2025. Further eligibility requirements and T&Cs apply.

Expires: 18 February 2025 (applications must be settled by 30 April 2025).

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Greater Bank – Up to $2,500 Cashback

Get up to $2,500 cashback on eligible new home and investment property purchases, or refinances. Loans of $250,000+ with an LVR of 80% or less are eligible for $2,000 cashback, while loans of $500,000+ can receive $2,500 cashback. Applications must be submitted by 31 May 2024 and funded by 31 August 2024. T&Cs apply.

Expires: 31 May 2024 (funded by 31 August 2024).

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IMB Bank – Up to $4,000 Refinance Cashback

Refinance your home loan to IMB and receive up to $4,000 cashback based on the loan amount:

• $2,000 for loans of $500,000 to $750,000
• $3,000 for loans of $750,000 to $1,000,000
• $4,000 for loans above $1,000,000
  All loans must have an LVR of 80% or less. Limit of one cashback per application every 12 months. Further exclusions and T&Cs apply.

Expires: Offer valid until further notice.

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ME Bank – $3,000 Refinance Cashback

ME is offering $3,000 cashback for refinancers with loans of at least $700,000 and an LVR of 80% or less. Available to both owner-occupiers and investors. Must settle within 120 days of application. Excludes refinances from other Bank of Queensland Group brands, such as BOQ and Virgin Money Australia. T&Cs and further eligibility criteria apply.

Expires: Offer valid until further notice.

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Newcastle Permanent – Up to $3,000 Refinance Cashback
Receive up to $3,000 cashback when refinancing to Newcastle Permanent:

• $2,000 cashback for loans between $250,000 to $499,000
• $3,000 cashback for loans of $500,000 or more
  All loans must have an LVR of 80% or less. Excludes refinances from Greater Bank. Limit of one cashback per application every 12 months. Further exclusions and T&Cs apply.

Expires: Offer valid until further notice.

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Regional Australia Bank – Up to $4,000 Cashback
Regional Australia Bank is offering cashback based on loan amounts:

• $2,000 for loans of $250,000 to $499,999
• $3,000 for loans of $500,000 to $749,999
• $4,000 for loans of $750,000+
  All loans must have an LVR of 80% or less. Applications must be received by 31 March 2025 and settled by 30 June 2025. T&Cs apply.

Expires: 31 March 2025 (loans must be settled by 30 June 2025).

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First Home Loan Offers and Deals

ANZ – $3,000 First Home Buyer Cashback
ANZ offers a $3,000 cashback for first home buyers purchasing or constructing a property with a loan of $250,000 or more. The drawdown must occur within 180 days of application. Further eligibility criteria and T&Cs apply.

Expires: Available until further notice.

Source: Canstar. Information gathered from lenders’ websites as of 4 February 2025. All offers are subject to change or withdrawal at any time.

Important Note: Consult with our mortgage broker to determine which offer you’re eligible for and which one best meets your needs. Please note that these offers may be withdrawn at any time. 

How to Determine If a Cashback Deal Is Worth It

1. Compare the Total Cost – Use our home loan comparison calculator to see if the savings from a lower rate outweigh the cashback offer.
2. Check the Loan Features – Ensure the new loan includes benefits like offset accounts, redraw facilities, or flexible repayment options.
3. Assess Your Long-Term Plans – If you plan to refinance again in a short period, consider whether the cashback deal’s lock-in period will limit your options.
4. Read the Fine Print – Understand all terms, fees, and conditions attached to the cashback deal before making a decision.

How to Apply for a Cashback Home Loan

The process of applying for a home loan refinance is similar to applying for any other home loan. Canstar has a checklist to guide you through the steps, but in general, once you’ve found a suitable home loan, you can apply online, at a branch, or through a mortgage broker.

When applying, you will need to provide the following information:

• Your personal details (ID, passport, etc.)
• Your employment status
• Proof of earnings (typically including payslips)
• Bank and credit card statements
• A breakdown of your assets and liabilities
• A breakdown of your household expenses
• Details of your current home loan and property

Whether you are a first home buyer, refinancing, or purchasing your next home, Canstar’s Home Loan Star Ratings and Awards can help you identify home loans – including fixed and variable loans for owner-occupiers and investors – that may offer outstanding value.

Final Question: Are Cashback Deals Worth It?

Refinance cashback deals can be a good short-term financial boost, but they aren’t always the best option in the long run. The key is to focus on the overall savings rather than just the upfront incentive. If the loan offers a competitive interest rate, low fees, and aligns with your financial goals, then a cashback deal can be a smart choice.

Ready to Refinance?

Contact us today to compare refinance home loans and find the best deal tailored to your needs!

FAQs about Refinance Cashback Deals

1. Do you always get cashback when you refinance?

No, cashback is not guaranteed when you refinance. Many lenders offer cashback deals as part of a promotional offer, but these deals may come with specific eligibility criteria, such as meeting a minimum loan amount, applying within a set time frame, or agreeing to a lock-in period.

2. How does cashback refinance/mortgage work?

A cashback refinance works by offering you a lump sum payment, typically between $1,000 and $5,000 (or more), after you settle your new home loan. The cashback is provided by the lender to encourage you to switch loans. It can help cover refinancing costs like fees or other related expenses.

3. What does cashback on a mortgage mean?

Cashback on a mortgage refers to the financial incentive a lender offers when you refinance your home loan. After your refinance is complete, the lender credits a cash amount to your account, which you can use for various purposes, such as covering refinancing costs or paying down other debts.

4. Are cashback mortgages worth it?

Cashback mortgages can be worthwhile if the overall benefits (such as a lower interest rate, flexible features, and low fees) outweigh the potential drawbacks, like a higher interest rate or hidden fees. It’s essential to carefully compare the entire loan package, including both short-term and long-term costs, before deciding.

5. Are both investors and owner-occupiers eligible for cashback deals?

Yes, both investors and owner-occupiers can be eligible for cashback deals, but the specific requirements may vary depending on the lender. Some lenders may offer different terms or cashback amounts based on whether you are purchasing an investment property or an owner-occupied home.

6. Does cashback apply to both fixed and variable home loans?

Cashback offers can apply to both fixed and variable home loans, but the specific terms may differ between the two types. Lenders may offer different cashback amounts or conditions depending on whether you choose a fixed or variable rate, so it’s important to compare your options carefully.