Lender increases refinance cashback offer

Bank of Queensland (BOQ) has announced that it has increased its cashback offer from $2,500 to $3,000.

Effective for applications received from 9 October until Sunday, 29 November 2020, the increase is available to individuals taking out a new home loan with BOQ when the loan is refinanced from another financial institution (excluding Virgin Money and BOQ Specialist).

The refinance deal is applicable to Australian residents aged 18 and over who take out a BOQ Clear Path, Economy, Intro Rate or Fixed Rate home loan product of at least $250,00 with a maximum loan-to-value ratio of 80 per cent.

Loans must settle prior to Sunday, 28 February 2021, and customers will be required to have an existing BOQ transaction account or open a BOQ transaction account that the cashback can be paid into.

All other eligibility criteria will remain unchanged. 

Similarly, BOQ-owned lender Virgin Money is also running a $3,000 cashback offer for all new refinance applications received between 12 October 2020 and 29 November 2020, and have their loan settled by 28 February 2021.

For Virgin Money loans, the cashback offer applies for a minimum loan amount of $300,000 and up to 80 per cent loan-to-value ratio.

Customers will need to open a Reward Me Home Loan Companion account alongside their loan, where the $3,000 cashback payment will be credited within 60 days of settlement.

Several lenders have been increasing and expanding their refinance offers in recent weeks, as competition in the market remains fierce.

ANZ recently announced that it was extending deadlines for its refinance cashback offer, even though the offer contributed to a spike in refinance applications earlier this year, which had a significant negative impact on its turnaround times for mortgage applications.

Likewise, Tasmania-based MyState Bank expanded its $2,000 cashback offer recently, making it available to all customers for all new, relevant applications Australia-wide.

[Related: NSW borrowers flock to majors for refinancing]