Refinance Cash Back Offers: What You Need to Know
May 15, 2023
Are you considering refinancing your Sunshine Coast mortgage and wondering whether cash-back offers are worth the hype? Refinancing can significantly lower your monthly mortgage payments, reduce your interest rate, and save money over the term of the loan. But with so many lenders offering cash-back offers, it can be hard to know whether these deals are real. We explore everything you need to know about refinance cash back offers so that you can make an informed decision.
What are Refinance Cash Back Offers?
Refinance cash-back offers are incentives promoted by lenders to attract someone who already has a mortgage to refinance. Essentially, you receive a cash-back amount when you successfully refinance your loan with the new lender. The amount of cash you receive varies depending on the lender and the terms of the offer. Most lenders offer a flat cash payment back into a nominated bank account which can be a great way to get some extra money in your pocket, or to use towards paying down debt or other expenses.
How do refinance cash back offers work?
When you refinance your home loan, you are essentially taking out a new loan to pay off your old one. The lender who offers you the cash-back incentive will typically give you a lump sum of cash after your loan has been approved and settled. The amount of cash back you receive will vary depending on the lender and the terms of your loan. At Sunshine Coast Mortgages, we typically see customers who refinance receive cash-back offers ranging from $2,000 up to $5,000.
Who is eligible for refinance cash back offers?
Unfortunately, not everyone who refinances their home loan or investment property loan is eligible for a refinance cash-back offer. Generally speaking, lenders will only offer these incentives to borrowers who meet certain criteria. These criteria may include having a good credit score, a low debt-to-income ratio, and a sufficient amount of equity in your home.
Are refinance cash back offers a good deal?
Like many others, you may be experiencing the pressure of interest rate hikes over recent months from the Reserve Bank of Australia. If that’s the case, your main priority in refinancing your loan is to lower your interest rate and reduce the pressure of monthly repayments.
Therefore, whether a refinance cash-back offer is a good deal for you will depend on your individual circumstances.
If you can save money on your monthly payments by refinancing, then the cash-back incentive may be worthwhile, particularly if you can put it straight off your loan or other general expenses. However, if you are not able to save money on your monthly repayments at a refinanced rate, then the cash-back offer may not be worth the hassle of refinancing.
How to find a refinance cash back offer
If you are interested in refinancing your loan and receiving a cash-back incentive, there are a few things you can do to find the right lender and cash-back offer for your individual situation.
Firstly, take a look at the cash-back incentives offered by over 20 of our lenders. At Sunshine Coast Mortgages, we have access to over 40 major lenders across Australia, which means there’s one to suit your specific financial needs and goals.
Secondly, book a free mobile consultation with our Sunshine Coast finance specialist, Shawn McAnnalley to compare our lenders and cash-back offers.
In conclusion, it’s important to do your research and compare offers carefully before you refinance your mortgage with any lender.
By following these tips when considering a refinance cash-back offer, you can make an informed decision on which provider is right for you:
- The amount of cash back you receive will vary depending on the lender and the terms of your loan.
- Some lenders may have restrictions on how you can use the cash.
- You may have to pay closing costs or loan setup fees when you refinance, so make sure you factor those into your decision.
- Refinancing may impact your credit score, so be sure to weigh the pros and cons before you make a decision.
If you are considering a refinance cash-back offer, be sure to talk to our qualified mortgage professionals to get the right information for your situation. They can help you determine if a refinance is right for you and help you find the best offer available.
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