Banks are continuing to pay customers for their home loan business, with almost 50 lenders now offering cash back or other incentives.

The competition is tipped to pick up pace even further, as up to $320 billion worth of fixed loans which were taken out when interest rates were low, are expected to finish their fixed term this year.

The Commonwealth Bank has admitted it is even writing unprofitable loans in an effort to secure a higher market share.

Rate City analyst Sally Tindall says about $19 billion worth of loans are being refinanced every month.

She warns homeowners to be cautious.

“With every deal, there is a winner and a loser, and banks don’t want to be on the losing end if they want to grow their loan books,” she says.

Incentives on offer include: free NBN access for three years, frequent flyer points for every year of the life of a loan, and up to $10,000 cash back.