Cashback offers and other incentives for first-home buyers
ANZ First Home Buyer Bonus — $3,000 cashback
Eligible first-home buyers can get $3,000 cashback with an ANZ home loan of $250,000 or more. You must have an ANZ Access Advantage, ANZ Plus or ANZ One offset account at loan drawdown (which must occur within 180 days of applying). Bonus is paid after settlement.
BankVic — $2,000 - $3,000 cashback
BankVic has a $3,000 cashback offer for eligible current police and emergency service workers (min loan amount is $350,000), and a separate cashback offer of $2,000 for eligible healthcare workers (min loan amount $200,000). If you fall into either category, you'll need to be purchasing a property with a max LVR of 80% and have your loan application received by BankVic by 18 February 2025 and lending funds settled or disbursed by 30 April 2025. Check with BankVic for full T&Cs and eligibility criteria.
Credit Union SA — $2,000 cashback
To qualify for this offer, you’ll also need to be purchasing a home with a minimum loan amount of $300,000 and a maximum LVR of 80%. Eligibility is also limited based on the borrower’s profession. Specifically, you must be a current or retired employees of the South Australian Education Community, a student carrying out studies in education, or an eligible immediate family member as a part of the lender’s Knowledge Counts banking benefits. The offer is not available on construction loans. Check with Credit Union SA for full T&Cs and eligibility criteria.
IMB Bank — $2,000 - $4,000 cashback
IMB Bank is offering cashback on new home purchases of:
- $2,000 for loans of $250,000 - $499,999
- $3,000 for loans of $500,000 - $749,999
- $4,000 for loans of $750,000+
To qualify, owner occupiers or investors must be purchasing a residential property, with a minimum loan of $250,000 and max LVR of 80%. This offer is only available on specific loans, namely the Budget Home Loan, Essentials Home Loan or Fixed Rate Home Loan. Check with IMB Bank for full T&Cs and eligibility criteria.
ME Bank — $2,000 cashback
If you’re purchasing a new home with a loan amount above $400,000, the cashback on offer to eligible borrowers is $2,000. You can qualify with an LVR as high as 95% if you’re an owner occupier or 90% for investors (lender’s mortgage insurance may apply if your LVR is above 80%). Check with ME Bank for full T&Cs and eligibility criteria.
Newcastle Permanent — $2,000 - $3,000 cashback
This offer is available to first-home buyers purchasing a residential property. with a maximum LVR of 80%. The deal is $2,000 cashback for loans of $250,000 - $499,999.99, and $3,000 for loans of $500,000 or more. Check with Newcastle Permanent for the full T&Cs.
Suncorp — LMI waiver for eligible medical professionals
Available if at least one borrower is an eligible Medical Practitioner (registered with AHPRA) at time of the loan application. The loan amount must be between $250,000 and $1,500,000, with principal and interest repayments and a loan-to-value ratio (LVR) between 80.01% and 90%.
Offer applies to residential property for owner occupied or investor purpose. Pre-approvals, bridging loans, construction loans and refinances of an existing Suncorp Bank home loans are not eligible.
Westpac — LMI waiver for healthcare and emergency services workers
Eligible borrowers in selected medical, healthcare and emergency services professions could get a home loan with a 10% deposit, without paying lender's mortgage insurance. Minimum income threshold applies, as well as other terms and conditions.
What’s the best cashback home loan offer?
Based on our analysis of cashback offers from home loan providers on our database, we found the offers from IMB Bank, ME Bank and Newcastle Permanent represent the best value overall.
This is down to a combination of:
- a high cashback amount
- competitive rates on eligible loans and
- the offers being available to a wide range of potential customers.
Please note this is our opinion only and not a product recommendation. You should consider your own circumstances and the details of each offer before deciding on which product, if any, is right for you. To inform this opinion, Money.com.au carried out a detailed comparison of cashback offers in January 2025, from the providers listed on this page. This analysis took into account the cashback amount, offer eligibility criteria, and the lowest interest rates on offer from each provider.
Use our technique for comparing offers
Step 1
Work out the net cashback benefit of refinancing to a particular loan: Cashback amount – establishment fees on the new loan.
Step 2
Work out your regular loan repayment with the loan (use a mortgage calculator) and then multiply that out to get cost of the loan over a year (or longer). This smooths out the initial impact of the cashback.
Step 3
Subtract the net cashback benefit from your annual loan repayment amount. The lower the amount you're left with, the better.
Tip: Make sure the loans you're assessing are comparable based on their features too and compare the cashback offer against loans that do not have cashback. This brings us on to...
Is home loan cashback worth it?
Cashback deals can be an attractive option for borrowers to offset the costs of refinancing. But they can end up costing you more in the long term if you set and forget your home loan. Cashback incentives encourage you to sign up for a loan for the upfront benefit, but the loan may be less competitive than what you could get elsewhere.
It's important to consider your loan's long-term value, based on the interest rate, fees and loan features combined. A higher interest rate, for example, will likely cancel out the cashback before long, sometimes within just a few months. A slightly lower interest rate might save you more money over the life of the loan compared to a one-time cashback offer.
Mansour Soltani, Money.com.au's Home Loans Expert
“Compare the monthly repayments between the cashback lender and a lender offering a more competitive rate but without cashback. Consider how many years it would take to offset the cash bonus. If it's under 2-3 years, the lower rate is probably a better option.”
Mansour Soltani, Money.com.au's Home Loans Expert
Cashback deal vs lower rate refinance comparison
Loan amount | |
Refinancing with no cashback and a lower rate | $800,000 |
Refinancing with cashback and a higher rate | $800,000 |
Interest rate | |
Refinancing with no cashback and a lower rate | 6.00% |
Refinancing with cashback and a higher rate | 6.25% |
Cashback | |
Refinancing with no cashback and a lower rate | $0 |
Refinancing with cashback and a higher rate | $2,000 |
Monthly repayments | |
Refinancing with no cashback and a lower rate | $5,154 |
Refinancing with cashback and a higher rate | $5,277 (+$123) |
Establishment fee | |
Refinancing with no cashback and a lower rate | $350 |
Refinancing with cashback and a higher rate | $350 |
Discharge fee | |
Refinancing with no cashback and a lower rate | $395 |
Refinancing with cashback and a higher rate | $395 |
Time it would take for interest savings to cancel out cashback | |
Refinancing with no cashback and a lower rate | 10 months |
Refinancing with cashback and a higher rate |
| Refinancing with no cashback and a lower rate | Refinancing with cashback and a higher rate | |
|---|---|---|
Loan amount | $800,000 | $800,000 |
Interest rate | 6.00% | 6.25% |
Cashback | $0 | $2,000 |
Monthly repayments | $5,154 | $5,277 (+$123) |
Establishment fee | $350 | $350 |
Discharge fee | $395 | $395 |
Time it would take for interest savings to cancel out cashback | 10 months |
What to watch out for
Here’s what to think about when considering any cashback offer:
- Is the interest rate on the cashback home loan more competitive than the rate on your current loan?
- What fees are involved (e.g. discharge fees, application fee for the new loan)? Make sure the fees and charges to set up the loan don’t eat away at most of the cashback.
- Does the cashback home loan come with the right features (e.g. offset and redraw) and is it structured to suit your financial situation and goals? For example, fixed-rate home loans tend to come with fewer features and restrictions on making additional repayments compared to variable rate home loans which are more flexible.
- Can you negotiate a lower interest rate or better loan terms with your existing lender without switching? If you're currently paying more than the average mortgage interest rate, your lender should be able to offer you a discount.
- Do you have at least 20% equity in your home? If not, you may not qualify for a cashback. Consider that if your LVR was above 80%, you’d likely be charged lender's mortgage insurance (LMI) again when refinancing which would negate any savings from the cashback.
Expert tip...
Michael Burgess, Money.com.au's Expert Mortgage Broker
"Cashbacks offers can give good short-term value, but they don't always work out for borrowers once you get past two years. The risk is the lender gets you in the door as a customer initially, but if something happens to your finances and you can't refinance again to another better deal, you might be stuck on a higher rate."
Michael Burgess, Money.com.au's Expert Mortgage Broker
Cashback offer checklist: Do you qualify?
1
Cashback offers are limited to specific borrowers
Cashback offers are usually available to eligible refinancers, including owner-occupier and investment loans. But, select lenders also offer cashback on loans for first-home buyers. Some deals may also only apply to particular loan products like variable rate home loans or package loans.
2
Cashback deals are for new customers only
Lenders usually make it so only new customers can get the cashback. So, if you’re refinancing a loan with the same lender (or even within the same network of lenders), you might not get any cashback.
3
There’s a minimum loan amount & loan-to-value ratio (LVR)
Cashback offers come with specific eligibility criteria, such as the type of loan (e.g. some lenders only offer cashbacks on owner-occupier loans, while others may extend them to investor loans as well). Typically, there’s a minimum loan amount, often $250,000 or more, and a minimum loan term. Many lenders also require a loan-to-value ratio (LVR) below 80%. Some even offer tiered cashback incentives, with higher bonuses for borrowers who take out larger loans.
4
Some cashback offers have an expiry date
Some cashback offers come with an expiration date. Generally, the home loan must be finalised (settled) by the lender’s specified deadline to qualify for the benefit. Alternatively, the offer may be open-ended but your loan must settle within a certain number of days of you applying.
5
Is the lender open to borrowers like you?
You might qualify for the cashback offer based on the loan amount you're refinancing, but remember some niche lenders are not open to all borrowers. Examples include regional banks and credit unions, or industry-specific providers. Credit UnionSA's cashback offer is only available to people linked to the education profession in South Australia, for example.
6
Other terms & conditions apply
Watch out for any other small print in the cashback offer. This might include requirements like remaining with the lender for a specified period of time after receiving the cashback or having to open a linked transaction account to be eligible.
In many cases, once the lender has paid out the cashback, it’s up to you how you want to spend it. This means you could use the funds to cover moving costs if you’re refinancing as part of a move, to renovate your home, or simply to save on interest by making a one-off lump sum repayment on your mortgage or stash it in your offset home loan account.
Other types of home loan refinance offers
Reward point offers
This kind of perk is more commonly associated with rewards credit cards, but a relatively new innovation in the home loan market is lenders (e.g. Qantas Money and Qudos Bank) offering reward points to customers who sign up. If you're considering this kind of offer, it's worth checking what the points would be worth when converted to gift cards. That will give you a rough idea of the offer's value compared to getting cashback.
Discounted interest rates
Discounted home loan interest rates are another carrot being sometimes dangled in front of refinancers. The catch is generally that the lower rate is for a limited period only. Some providers offer refinancers an ongoing discount that applies progressively as you pay off the loan (i.e. every year you get an additional discount on your rate). Unloan (backed by CommBank) and Athena Home Loans are among the Australian lenders with this kind of offer.
Waived home loan fees
Additionally, there are lenders in the market who will genuinely waive all fees on select home loans products to attract new customers. These are usually online lenders such as Unloan and Athena Home Loans who advertise no application fees, no ongoing fees and no discharge fees. Based on analysis by Money.com.au, a borrower could save up to $15,000 on a 30-year mortgage if all fees (including annual package fees) were waived.
LMI waiver for professionals
Some banks and lenders have an LMI waiver for professionals in certain secure or high-paying industries. This typically includes legal and healthcare practitioners, finance and accounting professionals, etc. You may have to be a member of your industry's peak body or authority (e.g. Australian Medical Association) to apply. ANZ, NAB, and Westpac are among the lenders that offer an LMI waiver for professionals.
How to apply for a cashback home loan
1. Find a good cashback deal
Finding the best cashback offer you qualify for is the first step. Use comparison tables for a side-by-side view of the best deals in the market or ask your mortgage broker to source some offers you qualify for. Ensure that the interest rate on the new loan is in line with other lenders not offering cashbacks. You may have some wiggle room to negotiate a lower interest rate, depending on the lender (if you're refinancing with a mortgage broker, they can help with this).
2. Request a mortgage discharge form (if you’re refinancing)
If you’re refinancing, you must request a mortgage discharge form from your current lender. This is used to release the security (the property) backing the home loan. After you request a discharge form, you will typically get a call from your lender's retention team. According to Mansour, if you have a competitive interest rate offer from another lender, they will usually match it to keep your business. If you’re a first-home buyer, you’ll skip this step.
3. Apply for the cashback loan
You can apply for a cashback home loan online via the lender’s website (it can take up to 20 minutes). Most banks and lenders will get you to verify your ID and sign all relevant documents online. Alternatively, a lending specialist will be touch to discuss your application in detail and ensure you qualify for the home loan product (and cashback). If you’re using a mortgage broker, they’ll handle the application process on your behalf from start to finish. In either case, you’ll be asked to submit your financial paperwork — usually two current payslips, three months of bank statements and a notice of assessment from the ATO.
4. Get your cashback
If you’re approved, the cashback will be paid into the transaction account linked to your new home loan within 30-60 days of settlement (depending on the lender). Some lenders may credit the cashback to any nominated transaction account with another bank, provided the account is in the same name(s) as the loan that qualified for the cashback offer.
