Yahoo Finance CBA loses home loan customers after axing cashback offer
ANZ and Westpac saw their mortgage books grow in August, while CBA experienced a dip.
Commonwealth Bank (CBA) has seen its home loan book drop for the second month in a row, following its decision to axe its $2,000 cashback offer.
The total value of household mortgages from Australia’s biggest bank dropped 0.3 per cent - or $1.4 billion - in August, the latest APRA figures found.
ANZ’s mortgage books rose by 0.7 per cent from the previous month, while Westpac’s loan book, which includes St George, Bank of Melbourne, BankSA and RAMS, also rose by 0.6 per cent. NAB’s home loan books lifted 0.3 per cent.
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Notably, ANZ and Westpac subsidiaries are the only banks out of the majors that still offer home loan cashback incentives.
RateCity research director Sally Tindall said these cashback deals would likely help ANZ and Westpac’s home loan books “continue to grow at a decent pace”.
“CBA’s home loan book has gone in reverse over the last couple of months, following the bank’s overt retreat from the refinancing market,” Tindall said.
“New-customer variable-rate hikes and the withdrawal of its $2,000 cashback has caused at least some borrowers to find or refinance their home loan elsewhere.
“The withdrawal of NAB and Westpac’s cashback at the end of June will be still washing through the books as borrowers taking up this offer had until the end of September to settle.”
CBA scrapped its cashback offer on May 31, while NAB and Westpac ended their deals on June 30.
Which lenders are offering cashback?
There are just 14 lenders still offering cashback incentives to select mortgage customers, according to RateCity’s database.
This includes ANZ and Westpac subsidiaries St George, Bank of Melbourne, BankSA and RAMs, at reduced amounts.
The highest cashback offer is currently from Reduce Home Loans at $10,000, but this is only for loans of more than $2 million.
Here is the full list of cashback offers:
ANZ - $2,000 (refinancers), $3,000 (first home buyers)
Bank of China - $4,000
Bank of Melbourne - $2,000
Bank of Queensland - $2,000
BankSA - $2,000
HSBC - $3,288
ME Bank - $2,000-$3,000
RAMS - $3,000
Reduce Home Loans - $2,000-$10,000
St George - $2,000
Loans.com.au - $2,000-$4,000
Defence Bank - $4,000
RACQ - $2,000
Newcastle Permanent - $2,000
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