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Free internet or $10k: Crazy incentives to switch your home loan

Home loans: A sold sticker on top of a for sale sign. Aerial view of red brick apartments. Australian currency staked on top of each other.
Now could be a good time to consider switching your home loan. (Source: Getty)

The Reserve Bank of Australia pushed the cash rate up to 0.85 per cent yesterday, and mortgage holders now face repayment increases.

But, just because the banks are passing on the interest rate hike to customers, doesn’t mean they have stopped competing for your business.

In fact, now is a great time to look into switching your home loan to a new provider to potentially get a lower interest rate as well as some great perks.

RateCity.com.au data found that banks across Australia were offering up to $10,000 cash back, frequent flier miles and even free internet.

Switching your home loan can be a tedious process, but well worth it if you can nab yourself a lower rate and get some benefits at the same time.

Here are some of the best deals out there.

Cash back

Cash-back offers are everywhere at the moment, allowing you to benefit quickly with an injection of funds.

Here’s what the banks are offering:

Lender

Max cash back available

Who can get it?

BCU

$5,000

Refinance

HSBC

$3,288

Refinance

ING

$3,000

Refinance

CBA

$2,000

Refinance

Westpac

$3,000

Refinance

NAB

$2,000

Refinance

ANZ (cashback through a broker)

$3,000

Refinance

Citi (cashback through a broker)

$6,000

Refinance

ME Bank

$3,000

Refinance

Reduce (refinance and new purchases)

$10,000

Refinance and new purchases

St.George Bank

$4,000

Refinance

Bank of Melbourne

$4,000

Refinance

BankSA

$4,000

Refinance

Virgin Money

$3,000

Refinance

Bank of Queensland

$3,000

Refinance

RAMS

$4,000

Refinance

Defence Bank

$2,500

Refinance

MyState Bank

$3,000

Refinance

Bank of China

$3,000

Refinance

Credit Union SA (refinance and new purchases)

$2,500

Refinance and new purchases

Bankwest

$2,000

Refinance

Newcastle Permanent

$3,000

Refinance

AMP Bank (only for new purchases)

$3,000

New purchases

BankVic

$1,500

Refinance

Peoples' Choice

$4,000

Refinance

Suncorp Bank

$3,000

Refinance

MOVE Bank

$2,500

Refinance

OneTwo

$5,000

Refinance

Frequent flier

If you love the benefits you get from your frequent flier miles, then you can earn up to 200,000 points with two Aussie lenders.

Here is what they’re offering:

Lender

Maximum points available

Conditions

Qudos Bank

Up to 200,000 QFF points.

200k QFF points when you apply for a new Qantas Points Home Loan between 01/04/22-30/06/22 and settle by 30/09/22

Macquarie Bank

Up to 170,000 QFF points when you borrow $600k

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

Lenders mortgage insurance waivers

If you’re looking to get into the market but haven’t quite saved enough for the 20 per cent deposit then you can get a waiver through some banks - which could save you thousands.

Lender

Offer

Conditions

St.George Bank

$1 LMI

15% deposit required, max loan size $850k, owner-occupier, principal and interest

Ubank

No LMI

15% deposit required, owner-occupier, principal and interest

Loyalty discounts

Sticking with a lender can also save you money through loyalty discounts. If you’re looking to get into the housing market you may want to consider some of these options.

Lender

Loyalty discount

Conditions

Unloan

Up to 0.30% off as you pay off your home loan

Receive an extra 0.01% p.a. discount every year, up to a maximum discount of 0.30% p.a.

OneTwo Home Loans

Up to 0.15% off your rate as you pay off your loan

For every 5% you pay down, OneTwo Home Loans will drop 0.03% of your interest rate, to a maximum of 0.15%

Athena

Automatic rate drop

Athena's variable rates are based on three LVR (loan-to-value ratio) tiers where they lower your rate based on how much you’ve paid down your loan

Other cool offers

Some banks are also thinking outside the box to attract new customers - like Commonwealth Bank’s ‘free internet for three years’ offer.

Here are some of the other options to consider:

Lender

Offer

Conditions

RACQ Bank

Insurance discounts and discounted rates for green upgrades

15% off Home & Contents Insurance for the life of the loan and RACQ members with a home loan of $250k+ can receive a 0.79% p.a. green loan to purchase eligible clean energy products

CBA

Free Internet

Eligible conditionally pre-approved customers get free NBN for 3 years

Great Southern Bank

Upfront fee waiver

No establishment fee or security fees when you apply online. Save up to $835

Credit Union SA

First home buyer grant

$5,000 first home buyer grant when you borrow more than $250k to purchase/build your first home with an LVR > 80%

Tic Toc Home Loans

Rate match

Tic Toc will match the rate if you find a lower rate on an identical variable principal-and-interest home loan

Suncorp Bank

Ongoing fee reimbursed

Package fee of $375 reimbursed, save up to $11,250

Bank Australia

Eco pause

Repayment break for environmental upgrades for up to 3 months or half your repayments for 6 months

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