Considering refinancing your home loan? You’re not alone, with the number of homeowners refinancing soaring in July, according to the latest Australian Bureau of Statistics (ABS) Lending Indicators.
A total of $17.22 billion in mortgages were refinanced in the month of July, an increase of $978 million (6.0%) from the previous month, in seasonally-adjusted terms.
And with so many Aussie homeowners looking to refinance their mortgages, cashbacks have remained a popular perk offered by lenders to attract refinancing customers. It’s not just lump sum payments on the table as well, with lenders offering benefits like waived Lender’s Mortgage Insurance (LMI) or Qantas frequent flyer points for new customers.
Let’s explore some of the home loan deals on offer for September 2021.
What deals are on offer this month?
- Cashback deals
In September, 24 lenders are offering cashback deals, with a majority for refinancers only. Only three cashback home loans are available for first home buyers. RateCity research also found that of those 24 cashback deals, 22 are linked to at least one owner-occupier home loan with a rate under 2%.
Cashback deals can range between $1,000 - $10,000, depending on the lender. It can help cover some of the costs associated with refinancing, such as application fees, or be put towards the new home through a big-ticket purchase, like an appliance.
- Reduced LMI
But what about offers for first home buyers? St. George offers a reduced LMI deal as well as the traditional lump-sum cashback. The perk is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan, and planning on making principal and interest repayments.
If your deposit is smaller than 20%, first home buyers will need to pay LMI, which can climb into the tens of thousands of dollars range, depending on your property location. And for those buying in capital cities, a deposit of this size is very difficult to achieve, making LMI inevitable. Waiving this cost for first home buyers may help to reduce the financial stress of saving for a first property.
According to St. George, the eligibility requirements include:
- "Be a first home buyer applying for your first home loan for your first property
- Apply for a home loan with St. George from Monday 13 July 2020
- Your home loan has an LVR up to 85% at the time of formal approval
- Loan size must not be over $850,000
- For joint applications, only one applicant needs to be a first home buyerOnly one property financed per application.”
Qantas frequent flyer points
You may be able to earn bonus Qantas frequent flyer points when you sign up for a home loan.
Macquarie Bank and Qudos Bank currently offer a home loan sign-up deal that rewards borrowers with Qantas Points. These points may be available at the time of approval or released over your loan term.
Plus, you won’t need to spend on eligible purchases to earn these reward points bonuses.
|Lender||Qantas Frequent flyer (QFF) points bonus||Interest rate||Comparison rate||Offer|
|Macquarie Bank Basic Flyer Home Loan||Up to 170,000 QFF points when you borrow $600k||2.34%||2.34%||10k QFF points for every $100k loan drawn, 1000 QFF points per month for the life of the loan, 25,000 QFF points on the third and fifth anniversary of your loan.|
|Qudos Bank Qantas Points Home Loan||150 QFF for every $1000 of loan balance, no minimum loan balance.||2.69%||2.69%||Earn 150 Qantas Points for every $1,000 on your loan balance p.a., credited monthly. No minimum loan balance – earn points for the life of your loan.|
Source: RateCity.com.au. Data accurate as of 09/09/2021.
- Keep in mind that there is more to a home loan than a deal being offered to you, and it’s always important to compare the interest rates, fees and features of a loan before applying. For more information on whether one of the above loans may suit your finances, consider using our Home Loan Calculator to see how potential repayments could fit in your budget.