{"id":28549,"date":"2020-10-27T09:32:40","date_gmt":"2020-10-26T20:32:40","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=28549"},"modified":"2020-10-27T09:32:40","modified_gmt":"2020-10-26T20:32:40","slug":"the-lenders-giving-mortgage-holders-up-to-4000-cash-back-for-refinancing","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/the-lenders-giving-mortgage-holders-up-to-4000-cash-back-for-refinancing\/","title":{"rendered":"The lenders giving mortgage holders up to $4000 cash back for refinancing"},"content":{"rendered":"

PHOTO: Home loan providers are providing refinancers thousands to switch to their product. But what’s the fine print?\u00a0Photo:\u00a0iStock<\/span><\/strong><\/p>\n

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A bank handing you thousands in cash to refinance your home loan<\/a> can sound like a sweet deal, but is it too good to be true?<\/p>\n

A cash-back offer is a marketing incentive to entice consumers to switch to a provider\u2019s product or service.<\/p>\n

They are a great bonus, especially if you\u2019re shaving down your repayments by refinancing to a lower interest rate. You can use the money for immediate purchases, or put it straight towards paying off your home loan.<\/p>\n

Should you be wary of cash-back offers?<\/b><\/h4>\n

While the offer is attractive, it might not be worth signing up for a product solely for the cash-back offer, home loan specialist at\u00a0Domain Home Loans\u00a0Jake Ziegler said.<\/p>\n

\u201cThe fundamental aspects of the loan \u2013 the interest rates, the fees, the features of the loan \u2013 are still really important considerations,\u201d he said. \u201cIt\u2019s really important to consider the overall cost savings of the product before you make the decision.\u201d<\/p>\n

Home owners who are refinancing should prioritise reducing their home loan repayments with a lower interest rate, rather than switching lenders for the cash in hand.<\/p>\n

\u201cFor example, a customer with a loan size of $400,000 or a loan term greater than 15 to 20 years \u2013 the total annual fees and the slight decrease in interest rates with a bank that doesn\u2019t offer a cash-back offer will still mean you\u2019re better in the long run in terms of interest savings and fees. Which means more money back in your pocket,\u201d\u00a0Ziegler said.<\/p>\n

What\u2019s the fine print?<\/b><\/h4>\n

Lenders change their cash-back offers quite regularly. Home owners may find that an offer expires in a few months and therefore they will need to move quickly.<\/p>\n

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Of the big four banks \u2013 CBA, NAB, ANZ and Westpac \u2013 three are currently offering competitive cash-back offers. Photo: iStock<\/strong><\/em><\/p>\n

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