Banks are continuing to offer borrowers cashback deals in an effort to lure larger market share.
According to analysis by RateCity there are now 12 banks offering $4,000 cash back on a $500,000 loan.
Ubank is offering up to $6,000, ANZ up to $4,000, CBA and NAB $2,000, and Westpac will give existing borrowers coming off fixed loans $3,500.
RateCity CEO David Bailey says he has never seen competition in the mortgage market so hot.
“There seems to be a real land grab for customers because there is now a once-in-a-generation opportunity where you have so many customers moving out of fixed interest rates,” he says.
But he warns cashback offers can blind borrowers to the fact the loans may not be the best for their needs.
“While these types of offers encourage people to switch, borrowers should do the maths and read the fine print before taking up a cash back offer,” he says.
