Compare Cashback Home Loan in Seconds

A cashback home loan provides an upfront cash payment when you settle your home loan. This is money you can use for any purpose—moving costs, furniture, renovations, or simply keeping as savings.

1. Fixed per product: Each lender sets a specific cashback amount for each loan product. The cashback amount is stated upfront and doesn't change based on your loan size. Check the comparison table above to see current offers.
2. Paid at settlement: Cashback is typically paid within 30-90 days after your loan settles. Payment terms vary by lender—check individual product details.
3. Eligibility varies: Each lender has their own eligibility criteria, which may include minimum loan amounts, borrower types (new customers vs. refinancers), property types, and loan purposes.
4. Clawback periods apply: If you refinance, sell, or pay off your loan within a certain period (clawback period), you may need to repay some or all of the cashback. Clawback terms vary by lender and are disclosed in the loan terms.
5. Consider the complete package: Cashback is just one factor. Also compare interest rates, fees, loan features, and lender service when choosing a home loan.

• You need upfront cash for moving, furniture, or other expenses
• You plan to keep the loan for at least the clawback period
• After comparing total costs, the cashback benefit is worthwhile for your situation
• You're refinancing and the cashback helps offset costs

• You plan to refinance within 1-2 years
• You don't need immediate cash
• After comparison, a lower rate product saves you more over your intended loan term
• You prefer maximum flexibility with no restrictions

Use the comparison table above to see actual offers side-by-side. Filter to show both cashback and non-cashback products to see which delivers better value for your specific situation.The Lender’s Playbook in a Cut-Throat Market

So, why do lenders push these offers so hard? It’s a simple game of acquisition. In a market where interest rates are relatively high and borrowers are actively shopping around, a lucrative cashback offer is a powerful selling point.

These strategies have a real impact on Australian society. For first home buyers, who often struggle to save enough for a deposit, a cashback can help cover some of the upfront costs in a market where a 20% deposit is difficult to reach. It can make home ownership seem more attainable and may improve how people perceive their bank, making it appear more supportive.

However, these offers can also increase socio-economic differences. Research shows that cashback deals and the online platforms promoting them are more commonly used by higher-income city buyers. This can make it harder for regional buyers, increasing the gap in home ownership between urban and rural areas.

This aggressive marketing hasn't gone unnoticed by the corporate watchdog, the Australian Securities and Investments Commission (ASIC). The regulator has voiced serious concerns that cashback offers could incentivise poor consumer outcomes and potentially breach critical lending laws.

At the heart of the issue are two key obligations. First, the Best Interests Duty, which legally requires mortgage brokers to act in the best interests of their clients. ASIC has warned brokers that recommending a loan based solely on an attractive cashback offer, rather than considering the loan's overall suitability and cost-effectiveness, could constitute a breach of this duty. A broker must prioritise the client's long-term financial well-being, not a short-term sugar hit.

Second are the responsible lending obligations under the National Consumer Credit Protection Act. This framework requires lenders to ensure that they do not provide loans that are unsuitable for the consumer. There is a real risk that a borrower, dazzled by a cashback, could be steered into a loan product that they can't genuinely afford over the long term, especially if interest rates rise further. ASIC now has explicit powers to intervene when a product is deemed likely to result in significant consumer detriment.

To combat this, ASIC is pushing for greater transparency. The regulator is proposing updates to its guidance on Product Disclosure Statements (PDSs), aiming to require lenders to be more transparent about how cashback incentives affect the total cost of a loan. The goal is to strip away the marketing spin and present the numbers in clear, unambiguous terms.

This push for transparency is being supercharged by the rollout of the Consumer Data Right (CDR). The CDR empowers consumers to securely share their financial data with accredited third parties, including comparison sites and budgeting apps. This will make it far easier to compare loan products holistically, shedding a bright light on the true cost of cashback deals and fostering a more competitive and transparent market.

While borrowers weigh the pros and cons, mortgage brokers are stuck in a particularly tricky position. On the one hand, cashback offers are a powerful tool for attracting new clients. On the other hand, they fuel a cycle of refinancing that can decimate a broker's income through a nasty mechanism known as "clawback."

Here’s how it works. A broker is paid an upfront commission by the lender when the loan is settled. They also receive a smaller, ongoing "trail" commission for as long as the loan remains active. However, if a client refinances and pays off the loan within a set period (typically the first two years), the lender "claws back" a portion, or sometimes all, of that upfront commission from the broker.

With cashback offers encouraging borrowers to refinance every 3 to 4 years in pursuit of the next deal, brokers are constantly at risk of clawbacks. It’s a significant source of stress and financial instability in the industry, with one report finding that 28% of brokers are emotionally impacted by them. This creates a difficult balancing act: do they promote a loan with a great cashback that the client wants, knowing it might lead to a clawback in 18 months?

Smart brokers are adapting. The best strategy is proactive and transparent communication. This involves educating clients on the long-term implications of chasing cashbacks and the total cost of their loan. By building a relationship based on trust and holistic advice, rather than just the latest deal, brokers can foster genuine loyalty that outlasts any single cashback offer. Many are also diversifying which lenders they work with and are actively advocating for fairer clawback policies across the industry.

For most Australian borrowers, making sense of these offers means being cautious and doing the maths. The cashback is not the most important part. The best choice is the loan with the lowest total cost for the time you plan to have it.

So, how do you make the right call?

1. Look Past the Headline. The first number you see is the cashback. The number you should care about most is the comparison rate. This rate bundles most of the known fees and charges, providing a more accurate picture of the loan’s true cost.
2. Do the Maths. Use a mortgage calculator to compare a cashback loan with a higher rate against a non-cashback loan with a lower rate. Project the costs over three, five, and thirty years. The results might surprise you.
3. Read the Fine Print. What are the eligibility criteria? You often need a minimum loan amount and a maximum LVR (usually 80%) to qualify. What are the upfront, ongoing, and exit fees? Are there penalties for paying the loan off early?
4. Factor in Switching Costs. If you’re refinancing, get a precise break cost figure from your current lender. Add any new loan establishment fees to that number. Does the cashback still cover these costs?
5. Consider the Features. Don't let a cashback distract you from loan features that could save you thousands, like a 100% offset account or the flexibility to make extra repayments without penalty.

Ultimately, a home loan cashback is a financial product, not a free gift. It usually comes with higher interest rates and fees over time. The best borrowers are those who carefully check the total cost before making a decision. While the cash can be appealing, choosing a loan with better long-term value is usually the wiser option.

Written by

Pravin Mahajan

Founder @ Bheja.ai | Mortgage Broker | Ex-CTO RateCity & CIMET

Pravin Mahajan is the Founder of Bheja.ai and an accredited Mortgage Broker (Credit Rep. 570637). Based in Sydney, he sits at the unique intersection of financial regulation and enterprise technology.

With over 30 years of experience, Pravin has architected the consumer platforms that millions of Australians rely on for daily financial and purchasing decisions. His career is defined by building high-scale systems that simplify complex choices:

• RateCity (Acquired by Canstar): As Chief Product & Technology Officer, Pravin led the tech transformation that culminated in the company's acquisition. He orchestrated "Australia’s First Home Loan Sale," a digital initiative that reached over 12 million people.
• CIMET: As CPTO, he built enterprise-grade infrastructure for energy and broadband comparison, scaling operations to support major B2B partners.
• Salmat (Lasoo): He architected digital catalogue systems used by 5.7 million monthly users, digitising the retail experience for brands like Target and Myer.
• Woolworths: Designed the real-time, secure "Pay at Pump" transaction infrastructure deployed Australia-wide.

Today, at Bheja.ai, Pravin combines this deep technical background with his Certificate IV in Finance and Mortgage Broking to build AI agents that don't just compare loans, but help Australians actively secure their financial future.