What are Cashback and Bonus Offers?
Cashback and bonus offers are promotions that lenders use to attract new customers or encourage existing customers to refinance their home loans. They can take a variety of forms, including cash rewards, fee waivers, discounted interest rates, and other incentives.
For example, a lender might offer a $2,000 cashback for refinancing your home loan with them, or waive certain fees associated with the loan. Some lenders also offer rewards programs, where you can earn points for making repayments or other activities, which can be redeemed for cash, discounts, or other perks.
What You Need to Know
While cashback and bonus offers can be attractive, it’s important to read the fine print and understand the terms and conditions of the offer before you make a decision. Here are some key factors to consider:
Eligibility Requirements: Some cashback and bonus offers may have strict eligibility criteria, such as a minimum loan amount or a requirement to open a new account with the lender. Make sure you meet the requirements before you apply, as you may not be eligible for the offer if you don’t meet all the conditions.
Repayment Obligations: Some cashback and bonus offers may require you to make a certain number of repayments or maintain a certain balance for a set period of time to be eligible for the reward. Make sure you understand these obligations and are comfortable with them before you accept the offer.
Interest Rates: While cashback and bonus offers can be appealing, it’s important to compare the interest rates and other fees associated with the loan. A lender may offer a cashback or bonus, but have higher interest rates or fees than other lenders, which could cost you more in the long run.
Loan Features: Consider the features of the loan, such as the ability to make extra repayments or access a redraw facility, as well as any restrictions or fees associated with these features. A cashback or bonus offer may not be worth it if the loan doesn’t meet your needs or has significant restrictions.Exit Fees: If you refinance your home loan again within a certain period, you may be required to pay exit fees or penalties. Make sure you understand the exit fees associated with your current loan and any new loan before you make a decision.