"If the home loan you're interested in ticks all of your boxes and comes with a perk, then great. If you find yourself looking at home loans just because of the perk, then the chances are the bank's marketing has gotten the better of you," Ms Tindall says.But refinancing can be a paperwork nightmare, especially if you're self-employed so many become complacent. Hence the cashback lures.
For Adam Kennedy, it was a win-win situation. He refinanced his loan through a broker, secured a lower rate as well as a $4000 cash payment through NAB. The father-of-two, who manages an advertising agency, says lower rates around June gave him incentive to switch but once the cashback offers hit the market, that sealed the deal.
"It really does pay to look around," Mr Kennedy said, adding he's time poor and has been guilty of paying too much and not refinancing in the past."We got a better rate than we were already getting and we got the cash back in addition. So there was kind of no reason to hold back. We just went for it."There are 10 lenders offering rates under 2 per cent.Are the fees high?This may include an offset account, ability to make extra repayments.
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