Are refinance cashback deals worth it?

With U Financial’s Leigh Deledio.

Everyone loves a good deal. There are even studies about how deal-hunting makes consumers feel smart.

When it comes to mortgages worth hundreds of thousands of dollars, it wouldn’t be any different.

If you have been thinking about refinancing your home loan, you have probably come across the term “cashback” in your search.

What are refinance cashback deals?

A refinance cashback deal is a marketing incentive some lenders offer borrowers when they choose to refinance their existing home loan with them.

Depending on the lender, cashback amounts will vary from $2,000 to $4,000.

Borrowers usually receive the cashback offer in the form of cash payment, but some lenders might offer gift cards or other perks instead.

Is everyone eligible for a refinance cashback?

Each lender will have its own terms and conditions when it comes to cashback offers, but there are certain common requirements you’ll probably need to meet to be eligible for a cashback deal:

Maximum loan to value ratio (LVR) of 80 per cent – that means the amount you need to borrow for the new loan cannot exceed 80 per cent
Minimum lending amount (typically $250,000), and
Have the application sent and the loan settled by a specific date.

Are cashback deals worth it?

They are worth it if you find the right loan for you.

Sure, saving money and finding deals clearly drives many people, but there are other things you also need to consider when it comes to refinancing, such as handy features that could save you money in the long run.

For example:

Offset accounts
Flexible repayment options
Redraw options, and
Flexible rates.

Refinancing shouldn’t be just about finding the best cashback deal or even the best rate, for that matter; it should be about finding the right loan for current needs and circumstances. Saving money in the process is always a plus!

For more information visit – https://ufinancial.com.au/

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It does not take into consideration your personal situation and may not be relevant to circumstances.

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