Banks are paying customers for the privilege to lend them money, with many now offering larger cashback incentives for new business.

According to Domain, more than 20 different banks and lenders are now offering cash to mortgage holders who will refinance with them.

These include Westpac, St George, HSBC, Commonwealth Bank, Bankwest and AMP.

The number of home-owners refinancing has been on the increase since the Reserve Bank of Australia started lifting interest rates in May this year.

Natalie Abel of Domain Home Loans says most banks require a minimum refinance amount of $250,000 and a Loan to Value ratio below 80%.

Abel says while a lump sum cash payment may be enticing, borrowers should ensure they check the fine print first.

And she says borrowers will have to wait a little while for the cash to lob in their accounts.

“The bank wants to see you make your first loan repayment, forking out the refinance cash bank amount around six weeks after settlement,” she says.