Non-major lenders extend cashback offers

Citi, ME Bank and P&N Bank are among the latest non-bank lenders to announce extensions to cashback offer deadlines.

Citi

Citi’s cashback offer, which was due to expire on Friday (30 April), has now been extended to 31 May 2021.

For Australian borrowers over the age of 18 refinancing from an external lender, or purchasing a home with a new eligible home loan product, they may be able to access $4,000 cashback where the home loan amount is $750,000 or more.

For purchases under this amount (but over $350,000), Citi borrowers will be able to access $3,000 cashback.

The cashback is valid for eligible deals submitted from 18 January 2021 to 31 May 2021 and settled by 31 August 2021. 

The offer is only valid for owner-occupier and investor loans (excluding construction loans, company applicants and trust applicants) with principal and interest and/or interest only.

ME Bank

For ME Bank’s $2,000 cashback offer, brokers will now be able to submit deals for their borrowers until 21 May.

The refinance deal was originally expected to expire on 9 April, but was extended out following demand.

Refinances must settle by 30 June.

The bank has also announced that it is lowering the minimum loan size required from $400,00 down to $250,000 “so even more Australians can take advantage of this offer”.

The cashback offer is only available to those moving their loan from another lender to ME Bank with a loan-to-value ratio (LVR) of 80 per cent or less.

It excludes construction and interest-only repayment loans for owner-occupiers.

P&N Bank

Meanwhile, WA-based lender P&N Bank has extended its $3,000 cashback offer for eligible home loan refinances until 30 June 2021. 

The settlement deadline has also been extended to 31 August 2021. 

The cashback offer is only available to those moving a loan of at least $250,000 from another lender to P&N Bank with an LVR of 80 per cent or less.

Competition remains strong

The moves to extend the high cashback offers come after several other lenders, including ANZ and 86 400, recently extended their deals to entice borrowers to move their loans to them.

Mortgage applications continue to remain strong in a low interest rate environment, with recent data from data analytics and credit reporting company Equifax finding that demand for home loans were up 23.5 per cent between January-March 2021, compared with the March quarter 2020, with every state and territory experiencing growth. 

Kevin James, Equifax’s general manager, advisory and solutions, commented: “Ultra-low interest rates are enticing more people into the market, but also an incentive for home owners to refinance in the quest to find a better rate.”

[Related: Mortgage applications up 23.5% in March quarter: Equifax]