In this Mortgage Minute, Emma discusses what cashback incentives are and whether they help you save when you refinance.
To learn more about refinancing, visit: https://www.mortgagechoice.com.au/home-loans/refinancing/
Hi, it’s Emma from Mortgage Choice with your Mortgage Minute where we try to answer some of your most frequently asked questions.
If you’ve had your home loan for a few years and you are shopping around for a better deal, you may be considering refinancing to a lender with a cash back on offer.
So what is a cashback? When you refinance to a new lender, that lender pays the cash back amount into your nominated account after your new loan settles.
While a few extra thousand dollars sounds like a great deal, it’s important to consider how the new loan fits into your financial situation, needs and objectives.
Make sure you know what interest rate you’re signing up for with the new loan and whether or not you could save more by choosing a different lender with a lower interest rate, even though they may not be offering a cash back.
You also need to consider whether staying on your current loan is cheaper in the long-term, instead of being lured by the short-term incentive of a cashback.
To learn more about refinancing and whether cashback might be a good option for you, simply visit MortgageChoice.com.au or make an appointment to speak to your broker today by calling 13 77 62.