Mortgage lenders offer cashback deals as incentives to attract new home loan customers. These deals typically range between $1,000 to $5,000 (or more). Lenders often promote these deals as limited time offers to encourage borrowers to choose them over others in a highly competitive mortgage market. The situation is a win-win, provided the customer selects the right home loan for their situation. The lender gains a new customer while the customer receives cash to help relieve some of their monetary pressure.
Cashback deals are generally available to owner-occupiers and refinancers. While cashback home loan offers are being mostly targeted towards Australians who are refinancing their home loan, a few cashback deals are available to first home buyers as well.