Cashback offers have come and gone in cycles. When lenders want to grow their loan books, they offer refinancers a few thousand dollars to switch. It's tempting money. But a cashback is only a good deal if the loan behind it is good too.
How cashback offers work
A lender pays you a set amount, often $2,000 to $4,000, after your refinance settles. There are usually conditions:
- Minimum loan size (often $250,000 or more)
- Maximum LVR (often 80%)
- Owner-occupier or investor only, depending on the offer
- Applications by a deadline
- Sometimes you must set up a transaction account or salary credit
The cash usually lands in your account within a few weeks to a couple of months.
Cashback vs a lower rate
Here's the key comparison.
On a $600,000 loan with 25 years remaining, a rate that's 0.20% lower saves about $74 a month, or roughly $890 a year.
| Lender A | Lender B | |
|---|---|---|
| Rate | 6.39% | 6.19% |
| Cashback | $3,000 | $0 |
| Monthly repayment difference | $74 cheaper | |
| Break-even | about 3.4 years |
If you keep the loan longer than about 3.4 years, Lender B saves you more. If you'll refinance again or sell sooner, Lender A's cashback wins.
The "cashback churn" trap
Some lenders recover the cashback through a slightly higher rate, or a rate that quietly rises after a year or two. Always compare the rate you'll pay after the honeymoon, not just the cashback.
Questions to ask before you take a cashback
- What's the ongoing rate, and is it a discount off standard variable or a fixed margin?
- Are there annual or package fees?
- Does the loan have a full offset account?
- What are the conditions to receive the cashback?
- Is there a clawback if I refinance away within a certain period?
When cashback makes the most sense
- Your refinance costs (discharge fees, government fees) are a few hundred dollars and the cashback covers them
- The rate is genuinely competitive on its own merits
- You need cash for an immediate cost, like moving or a repair
- You don't plan to keep the loan for many years
When to skip it
- The rate is noticeably higher than other options
- The loan lacks features you'd use, like an offset
- The fees offset the cashback over a few years
Is cashback taxable?
For a home loan on your own home, the ATO has generally treated refinance cashback as not assessable income. For investment loans, the treatment can differ and may reduce the cost base or deductions. Check with your accountant.
Frequently asked questions
How often do lenders offer cashback?
It varies with competition. Some periods have many offers; at other times, very few. A broker can tell you what's available right now.
Can I get cashback more than once?
Generally only once per lender, and some lenders exclude borrowers who've had their cashback before.
Does cashback affect my borrowing power?
No. It's paid after settlement and isn't counted as income.
Weighing up a cashback deal? Call Finfident on 0424 545 654. We'll compare it against the best rate you can get, over the time you'll actually hold the loan.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.