Banks have once again started to offer cash-back deals to borrowers in an effort to grab more market share.
Cash-back offers took off for a while in 2023 and competition reached a point where some banks were writing loans below the cost of capital.
Those offers dried up by the end of 2023 but have now resumed with some of Australia’s biggest banks now offering thousands of dollars’ worth of incentives.
Jeff Cai, an analyst with the Investment and advisory group Jarden, says the big bankers now have the discretion to offer cash incentives for home loans.
“Banks remain competitive on discounting and are also – selectively – offering cashback to retain existing customers given the ongoing focus on retention,” he says.
Canstar data director Sally Tindall says there is still a lot of heat in the mortgage market.
She says with banks keen to retain customers it’s a good time for existing borrowers to see if their banks will give them a better deal.