Cashbacks are a type of incentive that banks offer to entice customers to take out a mortgage with them. Essentially, a cashback is a lump sum of money that the bank pays to the borrower after their mortgage has been approved and settled. The amount of the cashback can vary, but it’s usually a percentage of the loan amount or a fixed dollar amount.

Cashbacks can be a valuable perk for borrowers, as they provide some extra cash that can be put towards things like home renovations or furnishings. It’s important to note, however, that cashbacks are usually only offered for a limited time, and they may come with certain terms and conditions. As with any financial product, it’s important to carefully consider the terms and conditions before taking out a mortgage with a cashback offer.

As of 2 May 2023 many banks offer a 1 % cashback, but this is a fluid space and can change. Hence, why we do the market research.

As mentioned above, cashbacks usually come with certain terms and conditions. Here are a few things to consider when it comes to cashbacks:

  • There is no such thing as a free lunch. Most banks have three year terms. This means you have to keep your business with them for three years. If you refinance or repay the debt within that time frame, you have to pay the full cashback back to the bank
  • Typically, you need to have 20 % equity in your property or a 20 % deposit to get the full cashback from the bank. There are some circumstances where first home buyers can receive a cashback with a 10 % deposit.

Again, this is a very fluid space, and it can change all the time.



Everything shared in this blog post is general financial advice. For financial advice tailored to you, please book a kōrero with us.