Aussie mortgage holders have pocketed millions of dollars in home loan cashbacks, as interest rates skyrocket.
About 5 per cent of Aussie mortgage holders have taken out or refinanced a home loan to get a cashback offer over the past two years, according to a new Finder survey of 1,096 respondents.
The average mortgage holder who received cashback pocketed $2,888 - equivalent to $476 million nationwide.
Finder home loans expert Richard Whitten said refinancing could be a financial lifeline for borrowers facing mortgage stress.
“Millions of homeowners are struggling to make their repayments so a cashback sweetener for refinancing is becoming even more attractive,” Whitten said.
“If you can lock in a cheaper interest rate and secure a cashback, it can add up to significant savings.
“Just remember if the loan itself isn't a good product for you, then the bonus simply isn't worth it. The loan's interest rate, fees and features are more important factors.”
Whitten urged homeowners to see if they could get a better deal with their lender, even if they had refinanced recently.
“If you have a fixed home loan and still have a majority of the term to go, you may have to pay a break fee to get out of the loan contract, but depending on how much you will save, this may still be worth it,” he said.
Cashbacks offers dwindle
Home loan providers have been dumping their cashback offers for refinancers over the last few months.
Of the Big Four banks, ANZ is the only one to still offer a cashback deal for new customers. The major bank currently offers up to $4,000 cashback for mortgage holders refinancing an eligible home loan.
While Westpac no longer offers cashback, its subsidiaries Bank of Melbourne, BankSA and St.George Bank still offer $2,000 cashback for refinancers.
On Finder’s database, the highest cashback offer available is up to $4,000.