A cashback is where a bank or lender offers a cash incentive to switch to them.
They work like this:
You refinance/switch/restructure to a new bank.
The new bank puts $3,000 into a new account you created with them, usually around 4-6 weeks after the re-finance settles.
That’s it.
Despite what some people might think, there’s nothing fishy about these offers.
Thing is, this week, NAB and CBA signaled that they will stop offering them from the end of June and May respectively.
To me, this says that these inducements might be on their way out.
So for those fixed-termers out there who are staring at the expiration of the fixed periods, you may as well take ‘em while they’re around.
Actually, I don’t know of many people who are ‘happy’ with the offer from their existing lender… so this applies to anyone with a mortgage.
BUT… (a big one, clearly)
Remember, the incentive is one thing. However, it means nothing if the new bank is not offering the sharpest overall deal AND the bank is going to provide a better service than the one you’re already with.
Being proactive here is fundamental to your mortgage management and Financial Security strategy.
Yeah, that thing.
And because you’re a grown up, it’s part of being a responsible borrower.
>>Get started now (unless you’re a procrastinator) requesting a free 10-min intro call to establish how we can help you.
Cheers,
Brodie Brown
Professional Mortgage Broker