Written by Brendan Gilmour – Finance Director
There has been a lot of media attention lately around the cashback being offered by some banks if you refinance with them. These usually range anywhere from $2,000 – $5,000 and YES we can access all of them as your Lending Portfolio Manager and Mortgage Broker here at Hudson FP.
In fact, if you are thinking of taking advantage of a cashback offer give our team a call first as we will ALWAYS be able to either match or even beat the offer through the connections, we have with the 80+ lenders on our panel.
Whilst cashback offers can be worthwhile in certain circumstances – there are just as many examples where the initial benefit is quickly negated by the other hidden costs in the loan offer.
Our role is to help you review your individual financial circumstances and then consider if the overall loan package is in your best interests in the long term as well as the short. We carefully evaluate the terms of the offer including the interest rate savings, cashback amount, repayment terms and other loan conditions. We check for alignment with your financial goals and then we also compare with all other bank offers. We determine whether the cashback offer provides a net benefit for your specific situation and advise what the alternative offers are.
Interestingly, despite the media hype, we find that only around 1 in 5 Hudson clients end up in a better overall financial position with a cashback offer when compared to other refinancing deals that we can provide. There are also an increasing number of lenders, including Macquarie Bank (which has broken into the ‘Big 4’) who don’t ever offer cashback – instead they offer consistently competitive interest rates and other favourable policy and loan terms.
From my perspective, the record number of cashback offers currently being advertised indicates what a great time it is to refinance. The banks are all fighting to make you a new customer and as a result most are forgetting to look after their existing ones! We can help you to take advantage of the current highly competitive market and find an offer with a bank that will save you anywhere from $2,000 – $60,000 in interest per year (*based on Hudson clients in the past 12 months). Contact Hudson on 1800 804 296.