Lender cuts rates, expands cashback offer

Virgin Money has made cuts to its variable home loan rates, with products now starting at 2.60 per cent (comparison rate 2.77 per cent), available for all new owner-occupied principal and interest applications received from 18 May 2020 with a loan-to-value ratio of 60 per cent or less and total borrowings of $500,000 or more.

The lender also announced that it is extending its cashback offer from $2,000 to $2,500 on all new eligible refinance loans.

The cashback offer is available on eligible new refinance loan applications made before 28 August 2020, with a minimum loan amount of $300,000 and a loan-to-value ratio of up to 80 per cent.

To be eligible for the cashback offer, customers will also be required to open a Reward Me Home Loan Companion account alongside their loan, with the $2,500 cashback payment credited to this account within 60 days of settlement.

Commenting on the announcement, Virgin Money CEO Greg Boyle said: “Right now customers are focused on their financial wellbeing and wanting a better value home loan. 

“At Virgin Money, we want to reward our customers for partnering with us on their home buying journey, by helping them save now and in the future.”

Virgin Money joins nine other lenders that have recently offered cashback incentives for those looking to refinance with a new lender, including three of the big four banks – ANZ, Commonwealth Bank and Westpac.

Further, Suncorp Bank announced a special cashback deal specifically for COVID-19 frontline workers, including healthcare workers, emergency services workers and teachers.

[Related: Banks will need to change the way they assess risk: Volt CEO]