End of Cash Backs

End of Cash Backs

Cashback Offers Ending – What It Means for Homebuyers and Refinancers

Mortgage interest rates are going up, and many people are looking for ways to save money on their home loans. One popular way has been cashback deals, where banks give you money (usually between $2000 and $5000) when you settle a home loan with them. But things are changing, and some banks have decided to pull these offers.

How Do Cashbacks Work?

Basically, cashback offers help you with the costs of switching loans. They can help you with things like upfront fees, solicitors’ costs, and stamp duty. These offers have mainly been for people moving their mortgages to a new bank.

Who’s Stopping the Cashback Deals?

Quite a few big banks have announced that they’re ending their cashback deals. Here’s a quick rundown:
• Commonwealth Bank of Australia: Ending on 1 June 2023
• NAB: Ending after 30 June 2023
• Bankwest: Ending on 31 May 2023
• Westpac: Ending on 31st Aug 2023
• ING: Ending on 30 June 2023
These changes follow a massive amount of home loan refinancing, and it seems like the cashback deals have become too costly for some banks.

Are Any Banks Still Offering Cashbacks?

Some smaller banks still have cashback offers, but it’s wise to look at the whole picture, like interest rates, fees, and other benefits. That way, you’ll find the best home loan for your situation.

Why Are Banks Ending Cashbacks?

The experts say that banks have been in a tough competition, offering cash to win over customers. But now, they see changes coming in the market, and it’s time for them to pull back.

How Does This Affect You?

It might slow down some people’s plans to refinance. Also, discounts on interest rates for new loans might end, making it a bit harder to find competitive rates.

What Can You Do Now?

If you’re thinking about refinancing or getting a new home loan, here’s some advice:
• Be clear about when a cashback offer will end. Know the last dates for applying and settling your loan.
• Don’t stick with your current bank just because you’ve been with them for a while. Look around for the best interest rates and ask a mortgage broker for help if you need it.

Navigating the housing market can be tricky, especially with changes like these. If you’re unsure, speak with a mortgage expert who can guide you. Things might be changing, but with the right advice, you can still find a great deal.