A home loan cashback is a cash payment for taking out an eligible loan. It can help with refinancing costs, but a higher interest rate or extra fees can outweigh the payment. Compare the cost of the loan first, then work out what the cashback adds.
Compare home loans with cashback
This table shows up to ten matching products recorded with a cashback feature from Ratepool’s live data, ordered by their lowest matching interest rate.
The example is a $500,000 owner-occupied loan on a $700,000 property, refinanced over 25 years with monthly principal-and-interest repayments. Both fixed and variable rates are included.
Check the collection date in the table and confirm the offer with the lender. If no loans match, that does not mean no cashback offers exist. Use “See more on ratepool” to change the example, or compare using your own figures.
What is a home loan cashback?
A cashback is a cash payment offered with an eligible home loan. The amount and conditions depend on the offer. Points and gift cards are different rewards, so compare their usefulness separately rather than treating them as cash.
Read the conditions before you apply
Look for the lender’s written offer terms, such as the offer documents on Newcastle Permanent’s terms page, and check:
- Who qualifies. Is the offer for refinancing, buying, new customers or a particular application channel?
- The loan requirements. Check the minimum loan amount, eligible products and maximum loan-to-value ratio (LVR). LVR is the loan amount divided by the property value.
- The dates. An application deadline and a settlement deadline can be different.
- The payment. Check the amount you would receive, when it is paid and whether you need a particular account.
- Any exclusions or repayment conditions. Check the terms before assuming you can receive multiple offers or keep the payment if you close the loan early.
A bigger cashback does not always mean a cheaper loan
ASIC’s refinancing guidance recommends weighing cashback against the interest rate and fees over the longer term. Compare loans over the same remaining term, and include switching costs. A smaller monthly payment can be misleading if you achieve it by extending the loan. Read ASIC’s refinancing guidance.
For example: suppose a loan pays $3,000 cashback but costs $1,000 more to switch to than an alternative. That leaves a $2,000 initial advantage. If it then costs $50 more a month, that advantage is used up after 40 months, or three years and four months ($2,000 ÷ $50).
This is a simplified cost illustration, not a loan repayment calculation. It assumes a constant $50 monthly cost difference and ignores the time value of money. For real loans, compare interest, fees and the remaining loan balance over the same period; repayments alone do not show the full cost.
Check fees as well as the headline rate
Ratepool separates listed fees into Upfront and Annual amounts. Missing or conditional costs may not appear, and a dash does not mean fee-free. Ask for the costs of leaving your current loan and setting up the new one, including any fixed-rate break costs. Moneysmart’s mortgage switching calculator can help compare the figures.
A comparison rate is another useful starting point, but it uses a standard example loan. It is not the cost of your particular loan. Read what comparison rates include and leave out.
Ask your current lender for a better deal too
Before switching, ask whether your lender can improve your rate. Then compare that offer with the alternatives, including the cashback and switching costs. Moneysmart explains what to check when switching home loans.
Sources: ASIC, tips for refinancing; Moneysmart, switching home loans; Moneysmart, mortgage switching calculator. Newcastle Permanent, offer terms. Sources checked 5 October 2026. The table’s collection date is separate from this article’s review date.
This article provides general information only. It does not consider your objectives, financial situation or needs. Confirm current rates, fees, eligibility and offer terms with the lender.