The Who, What & How of Refinance Cash Back Offers
With all the talk about interest rates and the housing market lately, many people are considering whether their current home loan meets their needs. As a result, lenders have started offering incentives for people to switch over to one of their home loan products. So, let’s take a look at what refinance cash back offers are, and how you can take advantage of them.
What is mortgage refinancing?
Mortgage refinancing is a fancy way of saying ‘switching lenders’. Deals, costs and loan features change over time, so the mortgage you got years ago may not necessarily suit your needs anymore. So, you can shop around and transfer your mortgage to another lender if you think you can get a better deal.
Things to consider when refinancing a home loan:
- Interest rates (variable/fixed-rate)
- Offset accounts
- Fees and other costs to close your existing home loan
- Establishment fees for a new home loan
Many people find they can save thousands over the life of their mortgage by making a change. If you think there’s a better deal out there for your home loan, speak to BrokerCo to find out how we can help.
What are refinance cash back offers?
Essentially, a home loan cash back offer is like any other discount you see in the retail world. If you’ve ever purchased a home appliance or car, sometimes these come with a cash back deal. It just means that you buy the appliance, and the store gives you some cash back, reducing the price. However, the cash-back may not always be in cash. They may offer store credit, gift cards or some other benefit.
For home loans, it’s much the same. A cash back offer is designed to entice borrowers into refinancing with a new lender. All home loan cash back deals are different, but generally, you can use the money for anything, such as contributing to loan establishment fees, paying it off the mortgage, or anything else you can use the money for.
Who offers home loan cash back?
Many lenders have started offering cash back deals for new customers. However, it’s not compulsory for banks. Rather, it is a marketing offer that all banks and lenders can make if they feel it will attract new customers.
Ideally, the best way to refinance your home loan is through a broker. For example, here at BrokerCo, we’ve got information on numerous banks and lenders all over Australia. This means we can do the heavy lifting of finding refinance cash back offers so you don’t have to contact every single bank or lender.
Am I eligible for a home loan cash back?
Anybody eligible for a home loan is theoretically eligible for a home loan cash back deal. Ultimately, eligibility for the cash back deal is at the bank or lender’s discretion. Naturally, all banks and lenders have different requirements for home loan eligibility also, so it pays to shop around.
Perhaps the more important question is whether refinancing your home loan is the right idea for you. For example, if you took a cash back offer to refinance your home loan, but ended up paying thousands more in interest over the life of the loan, then the cash back offer isn’t worthwhile. If you can get a better home loan AND a cash back offer, that’s a win-win.
How do I get a refinance cash back offer?
Firstly, you would need to be refinancing your existing home loan. Some banks may offer the same deal for new homeowners, so that’s worth checking also. All you need to do is contact each lender to find out if you’re eligible, and check the details of their home loan products.
If you need extra assistance, it’s a good idea to speak to a broker, because they can generally compare home loans and introductory offers to find the one that suits you best.
Contact BrokerCo for more information
If you’re considering refinancing your home loan, it’s crucial to find the very best home loan product for your needs. While cash back offers are very enticing, it pays to look a little more long-term. Remember, you’re going to have your mortgage for a long time. For more peace of mind that you’re choosing the right home loan, contact BrokerCo today. We have access to hundreds of home loan products all over the country, and we look at what’s best for your financial future as well as right now.
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