Eight banks junk their cashback deals

Only one big bank still in the cashback area

Eight banks junk their cashback deals


By Mina Martin

From a record high of 35 lenders offering cashback deals in March 2023, they are now down to just 15, RateCity.com.au has reported.

At the start of the new financial year, Westpac, NAB, ING, AMP Bank, and four other lenders scrapped these contentious offers overnight, with ANZ now the only big bank offering a cashback deal.

ANZ continued to offer up to $4,000 cashback for select refinancers and up to $3,000 for first-home buyers, the RateCity.com.au database showed.

Meanwhile, Westpac subsidiaries St George, Bank of Melbourne, and Bank SA have slashed $2,000 off their cashback offers. The highest cashback offer is from Reduce Home Loans, at $10,000, but only for loans of more than $2 million and is not available on the lender’s lowest rate.

Below is a list of lenders still offering home loan cashback deals on RateCity.com.au:

“Banks are exiting the cashback scene in a collective bid to sandbag the refinancing revolution currently taking hold of the nation,” said Sally Tindall (pictured), RateCity.com.au research director. “CBA kicked off the exodus back when it announced on May 9 it was wrapping up its cashback. Just eight weeks later and 13 lenders have followed.

Tindall said the only big bank to buck the cashback trend is ANZ, which continues to offer up to $4,000 cashback for customers willing to jump ship.

“While ANZ’s rates aren’t the most competitive in the market, some customers will no doubt be drawn to the sugar hit of up to $4,000 in cold hard cash,” she said. “This move is likely to win ANZ a greater share of the refinancing pie, however with bank profit margins under the pump, the question is, how long will ANZ keep the offer open?”

Currently, there are still 15 lenders in the cashback game, but for households looking for lasting relief, Tindall said they are better off spending their time shopping around for an ultra-low rate and haggling with their new bank to waive any associated fees. 

“Despite the cashback exodus, refinancing in May hit a near record high, with almost $21 billion worth of mortgages switching in just one month,” Tindall said. “This kind of refinancing activity will keep the heat in the market that many of the heavy hitters are desperately trying to cool.”

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