With rising interest rates, mortgages may be rising, but lenders are offering an incentive to counteract that where possible.

Homeloanexperts.com.au CEO Alan Hemmings says home owners should review their mortgages to ensure that they are getting the best deal possible.

And that’s not just on the interest rate.

“Some major banks are providing $4,000 right now,” he says about cashback schemes that seem to be all the rate with landers at the moment.

“In this rising interest rate environment, homeowners should take a close look at their home loan to see if refinancing is right for them, especially if they haven’t reviewed their deal in two years or more. Before refinancing, it is essential to have a clear idea of your purpose for refinancing and to always keep in mind the costs of refinancing when determining which deal may be right for you.

What are some of the lenders offering cash back when you refinance your mortgage?

Commonwealth Bank offers new customers $2,000 cashback when they move over from another bank when refinancing. The offer applies to all owner-occupied or investment loans and there is a minimum refinance amount of $250,000.

While existing customers aren’t eligible, they’re not totally forgotten. They can get a 30 per cent discount on an NBN plan from More for the first 12 months.

CBA also offers a Home Loan Compassionate Care program which offers complimentary protection when you need it. Mortgage holders who fall ill, or have a spouse or dependant who passes away or is diagnosed with a terminal illness are eligible.

Under the program, mortgage holders will have their repayments paid for up to 12 months with a $120,000 cap.

Ubank offers new customers between $3,000 and $4,000 cashback with its Ubank Neat Variable Home Loan. You’re eligible if you borrow at least $250,000, and you’ll get an interest rate of 4.14 per cent. The minimum deposit is 40 per cent.

This offer is also available on their Ubank Own Home Loan Fixed, however the rate jumps to 5.19 per cent. However, the loan requires only 10 per cent deposit.

Also offering cashback – this time up to $3,288 – is HSBC’s Home Value Loan. It requires a 30 per cent minimum deposit, with a minimum loan value amount of $250,000.

ANZ offers new customers a $4,000 cashback if the LVR is less than 80 and $2,000 if it’s greater tahn 80. Both loans have a minimum borrowing amount of $250,000.

A media representative said: “We encourage existing customers to call us to have a conversation about their loan. We also encourage them to make use of our Home Loan Calculator and Home Loan check-in tools that will allow one of our experienced bankers to review and adjust where appropriate changes to their current home loan.”

Before you switch mortgages though, Sarah Megginson, money expert at Finder says you should crunch the numbers.

Work out the costs, including application and ongoing fees, and make sure the new loan really is a better deal. Check the exit costs from your current loan too (there may be a discharge fee or break costs).

“One last thing: cashback offers can be really tempting. You can get up to $4,000 in free money, deposited to your bank account, for switching to a new lender. This can be great value, just make sure the interest rate is genuinely the lowest you can find, so you don’t end up paying more for your repayment each month just to get that upfront cash injection.”


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