Tiimely Home, formerly Tic:Toc, launched the new deal in the wake of Tuesday's Reserve Bank of Australia decision to hold the cash rate at 4.10% at its April meeting.
The cashback deal is available to borrowers taking up a two-year fixed rate home loan of 5.74% p.a. (5.79% p.a. comparison rate*) for owner occupiers and 5.94% p.a. (6.03% p.a. comparison rate*) for investors.
It applies to loans of $500,000 or more with loan-to-value ratios (LVRs) up to 90%.
Tiimely, backed by Bendigo and Adelaide Bank, joins around a dozen or so lenders currently offering cashback and other special offer deals.
How does Tiimely's cashback deal stack up?
Tiimely's cashback offer is the only one on the market that specifically applies to borrowers taking up a fixed rate home loan.
It is also the only one that applies to borrowers with an LVR over 80%.
Other cashback amounts on the market range from $2,000 to $4,000 depending on various factors including whether an applicant is refinancing an existing loan, the loan size, and loan type.
Bank of Victoria varies its cashback offer according to occupation - $3,000 for police and emergency service officers and $2,000 for health workers.
The highest cashback amount currently available is $4,000 from Regional Australia Bank for eligible borrowers refinancing owner occupier and investor home loans over $750,000.
IMB Bank also offers $4,000 for loan amounts over $1 million.
Why take up a fixed rate home loan when rates are expected to fall?
Despite the cashback, Tiimely may find it hard to sell its offer at a time when interest rates are widely expected to fall.
The 5.74% p.a. fixed rate offer is the same as Tiimely's lowest variable rate for owner occupiers.
But Tiimely's head of retail Belinda Jackson says the offer is responding to growing borrower fatigue over economic uncertainty and mixed signals around the pace and depth of future RBA rate cuts.
"People are tired of waiting and wondering," she said. "This offer delivers clarity, stability and cash in your pocket - right now."
While RBA governor Michele Bullock attempted to hose down expectations of further cuts after the cash rate fell in February, markets have gained confidence there will be another two to three cuts in 2025.
After Tuesday's cash rate decision, Ms Bullock also signalled the board would cut the cash rate if US President Donald Trump's trade tariffs were to spark a global economic slowdown.
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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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
