Home loan offers and deals - October 2021

author-avatar By on October 01, 2021
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Home loan offers and deals - October 2021

Savings.com.au has compiled some of the special home loan deals on offer from lenders across Australia.

Below are three featured home loan cashback offers currently available to owner occupiers: 

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Advantage Package Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 60%)

FixedMore details

Fixed Rate Home Loan (Principal and Interest) 2 Years

FixedMore details

Complete Fixed Home Loan (Principal and Interest) 2 Years (LVR 80%-90%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of October 19, 2021. View disclaimer.

People love free stuff. Whether it’s getting your tenth coffee free or winning a meat tray at the RSL, money and prizes won always seem sweeter than earned. 

So if you’re spending hundreds of thousands of dollars over the next 25 odd years on a mortgage, it can be nice to get something in return. Enter home loan offers and deals. 

These deals typically come in the form of cashback offers, but you can also get gift vouchers, loyalty program points and more. 

Of course, these deals are designed to entice you – they shouldn’t be the sole reason for choosing a lender. Typically, the most important things to look at when choosing a loan are the advertised rate and comparison ratethe features, and your potential monthly repayments.

Also, make sure you fully read the Ts and Cs (that’s terms and conditions) on each lender’s website to get the full details on these offers before committing to one.


Home loan cashback offers 

A home loan cashback offer generally involves a lender offering an incentive for you to take out a new loan with them or refinance an existing one. The incentive will usually take the form of cash, or it can be rebated towards fees you’d be charged – in some cases, both! 

Generally, you can spend the money however you like, making cashback a lucrative marketing ploy.

Below, you'll find a range of available cashback offers available at the time of writing in Australia.

Note: P&I=Principal and Interest, IO=Interest Only, OO=Owner Occupier. Refer to the lenders’ websites for full terms and conditions.

Bank of Melbourne cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments and Investment loans. Only available on the Advantage Package and Basic home loans. $395 annual package fee. $250k min loan per property refinanced. Excludes refinances from within Westpac Group.

  • Expiry date: 30 November 2021

Bank SA cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments and Investment loans. Available on our Advantage Package and Basic home loans. $395 annual package fee. $200k min loan per property refinanced. Excludes refinances from within Westpac Group.

  • Expiry date: 30 November 2021

Bankwest cashback offer

  • Cashback amount: $2,000

  • Conditions: For new OO with P&I and IO repayments and Investment loans. Minimum home loan amount is $250k. Excludes refinances from Bankwest and Commonwealth Bank.

  • Expiry date: 25 February 2022

BOQ cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments and Investment loans. $250k min loan amount with LVR of 80% or less.

  • Expiry date: 31 October 2022

BCU cashback offer

  • Cashback amount: Up to $5,000

  • Conditions: For new OO and Investors with a min loan amount of $300k and LVR of 90% or less. BCU will give you 0.75% of the value of the loan, up to $5,000. 

  • Expiry date: 30 November 2021

Commonwealth Bank cashback offer

  • Cashback amount: $2,000

  • Conditions: Minimum refinance amount of $250,000. Not available for Bridging Loans and OO loans with IO payments.

  • Expiry date: 31 December 2021

Credit Union SA cashback offer

  • Cashback amount: $2,500

  • Conditions: Offer available on new IO and OO loans with minimum new borrowings of $250k wand LVR of 80% or less. Bridging loans are not eligible for this offer. Offer may be withdrawn or altered at any time without notice.

  • Expiry date: Until further notice

ING cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments and Investment loans. Customers must hold an ING Orange Everyday account. To be eligible for the offer, customers need to be refinancing an existing loan of $500,000 or more and have an LVR of 80% or less. Excludes internal ING refinances.

  • Expiry date: 31 December 2021

ME Bank cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO and Investors on all ME home loan products borrowing a minimum loan amount of $250,000 with an LVR of 80% or less. 

  • Expiry date: 29 October 2021

NAB cashback offer

  • Cashback amount: $2,000

  • Conditions: For new OO with P&I repayments and Investment loans. Customers must hold a NAB transaction account. To be eligible for the offer, customers need to be refinancing an existing loan of $250,000 or more. Excludes refinances from within NAB Group.

  • Expiry date: 31 October 2021

Newcastle Permanent cashback offer

  • Cashback amount: $2,000

  • Conditions: For new OO and Investment loans. Min balance of $250k. LVR of 80% or less. Cashback to be paid into an eligible Newcastle Permanent deposit account.

  • Expiry date: 17 December 2021

RAMS cashback offer

  • Cashback amount: $4,000

  • Conditions: For new OO with P&I repayments and Investment loans. Minimum refinance amount of $250,000. Excludes refinances from within Westpac Group.

  • Expiry date: 30 November 2021

St George cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments and Investment loans. Only available on the Advantage Package and Basic home loans. $395 annual package fee. $250k min loan per property refinanced. Excludes refinances from within Westpac Group.

  • Expiry date: 30 November 2021

Virgin Money cashback offer

  • Cashback amount: $3,000

  • Conditions: For new OO with P&I repayments. Minimum loan amount of $300k and LVR of 80% or less. Customers will need to open a Reward Me Home Loan Companion account alongside their loan.

  • Expiry date: 30 November 2021

Westpac cashback offer

  • Cashback amount: $3,000

  • Conditions: Available on Packaged and Flexi First Option loans. For new OO with P&I repayments and Investment loans. $250K min loan per property and LVR of 90% or less. $395 annual package fee. Excludes refinances from within Westpac Group.

  • Expiry date: 30 November 2021

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of October 19, 2021. View disclaimer.


Other home loan offers

Cashback offers are typically the most lucrative and popular offer lenders will use, but that doesn’t mean there aren’t other offers around.  

Lenders often waive fees such as monthly fees or application fees, or reduce fees and rates on their other products, like credit cards or transaction accounts.

Recently, many lenders have started reducing or completely waiving Lenders Mortgage Insurance (LMI) as a way to bring in first home buyers.

Less often, lenders will offer rewards points for loyalty programs, either as a result of a team-up or through their own program. 

Below, you’ll find a comprehensive list of other offers lenders are using to try and win your business.

ANZ waived fees offer

  • Loan name: ANZ Simplicity PLUS

  • Offer: Loan approval fee (usually $600) and renegotiation fee waived (usually $200-$350).

  • Conditions: Will only waive fees upon request. Minimum loan amount of $50k.

  • Expiry date: Until further notice

ING waived fees offer

  • Loan name: Fixed-Rate Home Loan

  • Offer: When split with an Orange Advantage Home Loan, the $499 application fee is waived.

  • Conditions: In OO borrowing, max LVR limits may apply.

  • Expiry date: Until further notice

St George LMI offer

  • Loan name: All home loans.

  • Offer: LMI for $1 first home buyers.

  • Conditions: Available to OO first home loans on P&I, with a maximum loan size of $850,000 for a maximum property value of $1,000,000. 

  • Expiry date: Until further notice

Note: Refer to the lenders’ websites for full terms and conditions 


Savings.com.au’s two cents

As good as $2,000 cash in your pocket right now might sound, it shouldn’t be the defining factor for which home loan you choose. Borrowing $350,000 over 25 years at a rate of 3.00% p.a. could cost you $1,659 a month and $148,521 in interest over the life of the loan (with principal and interest repayments), according to our home loan calculator.  

In contrast, that same loan at a rate 2.00% p.a. would cost you $1,483 a month and $95,647 over the life of the loan. That’s a difference of $176 a month and $53,054 in interest over the life of the loan, which makes that $2,000 or so look like pocket change. 

Always consider the comparison rate and your estimated monthly repayments when choosing a loan. Making the wrong decision could cost you tens of thousands of dollars.


Photo by Artem Beliakin on Unsplash 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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