The good news? You probably are!
A cashback contribution is a financial incentive that banks offer to borrowers when they take out new lending.
While banks may refer to it by different names, it essentially means they’re giving you money in return for staying with them for a certain period.
Let's dive into what cashbacks are, when they are paid, and whether you might be eligible!
When are cashbacks paid?
Cashbacks are always paid with new lending. This could be if you are:
Purchasing a new home
Topping up an existing loan
Selling and buying simultaneously
Refinancing your mortgage to another bank
How do banks determine cashback amounts?
Each bank has different policies, but generally, a percentage of your total loan amount is allocated to a cashback.
Some banks even offer fixed cashback amounts for first-home buyers, such as $3,000 or $5,000, regardless of how much is borrowed.
However, if you’re borrowing a significant sum, your cashback amount may be capped, say at $10,000.
Will I be eligible for a cashback?
If you’re taking out new lending, chances are, yes!
The exact cashback amount and eligibility criteria depend on which bank you choose.
This is where working with a mortgage adviser can be really beneficial —we compare offers from different banks to find the best deal for you.
Balancing cashback with interest rates
Cashbacks should always be considered alongside interest rates and loan products, too.
Sometimes, one bank may offer a lower interest rate, while another provides a higher cashback, and we can help make sure you're across all of the options.
Beware of clawback terms
Cashbacks come with a clawback period, which means if you leave the bank within a certain timeframe—typically three to four years—you may be required to repay some or all of the cashback.
This is important to consider if you’re planning to sell, refinance, or change lenders in the near future as we don't want any surprises on settlement day!
Let's find the best cashback offer for you!
Not all cashbacks are created equal, and different banks have different policies.
If you’d like to explore your cashback options and see which lender is the best fit for your situation, reach out to us! We’d love to help you make the right choice!
Book in a call with one of our advisers below and we can find the options for you.