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Borrowers take home cashbacks

Australian mortgage holders have received millions of dollars in home loan cashbacks in the past two years, according to new research by financial comparison website Finder.

A recent Finder survey revealed 5% of respondents had negotiated or refinanced a home loan in order to take advantage of a cashback offer over the past 24 months. That number extrapolates out to 165,000 mortgage holders who have pocketed some cash from refinancing or taking out a new home loan.

The average mortgagor who received a home loan cashback offer pocketed $2,888 – equivalent to $476 million nationwide.

Richard Whitten, home loans expert at Finder, said refinancing can be a lifeline for cash-strapped borrowers.

“Millions of homeowners are struggling to make their repayments, so a cashback sweetener for refinancing is becoming even more attractive”, Whitten said.

“If you can lock in a cheaper interest rate and secure a cashback, it can add up to significant savings.”
Whitten warned, however, that borrowers should remember if the loan itself isn’t a good product for you, then the bonus simply isn’t worth it.

“The loan’s interest rate, fees and features are more important factors”, he said.

The Finder data showed 11% of mortgage holders had switched their home loan in the past two years without getting a cash bonus.

Men (9%) were three times as likely as women (3%) to have switched home loans and received a cashback bonus. Interestingly, women secured a higher cash bonus – an average of $3,800 compared to $2,431 for men.

The highest cashback offer on Finder at the moment is up to $4,000.

Whitten urged homeowners to see if they can negotiate a better deal with their lender.

“Even if you refinanced in 2022, it doesn’t hurt to review your options and see if you could still save more.

“If you have a fixed home loan and still have a majority of the term to go, you might have to pay a break fee to get out of the loan contract, but depending on how much you will save, this could still be worth it”, he concluded.

About Adam Nobel

CEO | Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA


0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 22 years experience in property investment, and 16 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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