Can I get Mortgage Cashback?

A bank paying you?  What is this madness?

Well, it's known as 'cashback' and in a competitive lending environment a bank may offer cashback for a borrower who is taking out a mortgage.  The way it works is that once a mortgage is successfully secured and drawn down, the bank will transfer a predetermined amount into the borrower's bank account. This sum, commonly referred to as a 'cashback,' typically represents a percentage of the initial mortgage amount. Cashback offers provided by banks generally range from 0.10% to 1.00% or may be a fixed dollar amount known as a 'cash incentive' such as $3,000 to $7,500 or even more, depending on the size of the mortgage. 

Some banks, particularly challenger brands like Heartland and HSBC, have a track record of providing market-leading interest rates that are lower than their competitors. On the other hand, the larger banks, often referred to as the big four (ANZ, ASB, BNZ, and Westpac), may not be as competitive in terms of interest rates. Instead, they may entice borrowers by offering a cashback incentive, which can work out better for the borrower.

When you're offered a cashback incentive of 0.1%, 0.7%, or even 1% of your mortgage balance, you might be skeptical about the underlying motives since banks are not typically known for their generosity. Our guide will walk you through all the essential details about the financial incentives offered by banks to attract new customers. It will equip you with the information you need to make an informed decision that aligns with your specific requirements.  


How much cashback can I get?

Banks adhere to a set of standard criteria when determining cashback offers. These criteria include:

Deposit size: The cashback amount is often influenced by the Loan Value Ratio (LVR), which compares the size of the deposit to the total loan amount. Generally, a lower LVR (indicating a larger deposit) results in a higher cashback offer.

Loan size: Banks typically aim to lend as much as possible, and cashback rates can be utilized as a means to attract and retain customers. Consequently, the size of the loan may impact the cashback amount offered.

Affordability: When assessing borrowers, banks consider factors such as income and credit risk. Lower-risk borrowers, who exhibit better affordability, are more likely to receive higher cashback offers.

Loan repayment structure: The type of loan repayment chosen by the borrower also plays a role. Interest-only mortgages generally qualify for lower cashback rates, while principal and interest mortgages often come with higher cashback offers.

These criteria enable banks to evaluate various aspects of the borrower's financial situation and tailor cashback offers accordingly. By considering deposit size, loan size, affordability, and loan repayment structure, banks aim to provide incentives that attract and suit the needs of different borrowers - it is here where our team can help get you the best deal - complete the short form or request a Mortgage Health Check. 


Key benefits of comparing home loans through NZ Compare

It is INCREDIBLY easy.  Our advisors do all the hard work.

Compare multiple providers. Our advisors know and understand them all.

Access to New Zealand's best home loan lenders.

• Did we mention it was FREE?  The mortgage advisors at The Umbrella Company receive their payment from the lender, not you, the borrower. As expert, independent brokers, the team at The Umbrella Company often have access to different products and options which are not widely listed by the lenders they work with.  Did we mention they could also negotiate you a great cashback when you refinance a home loan or change lender. 


Our advisor partners - The Umbrella Company

The Umbrella Company are a talented team of mortgage advisers who are passionate about making a difference in people's lives. They work hard to get the best possible outcomes for our clients and pride themselves on being accessible, friendly and professional. 

As your personal mortgage adviser, their mission is to be there for you when you need financial advice around a property purchase. They're there to help you choose the right lender for your home or property.  Whether it's lending for the family home, bach, equity release or an investment property, the team at The Umbrella Company can help. The Umbrella Company will always be there to assist you in the event of a question or change in your circumstances. They understand that financial dealings can become difficult and stressful and their focus is on making the process as easy as possible for you, so you can focus on what's important - enjoying your life and building your wealth. 

So, if you're looking for peace of mind, The Umbrella Company can help. Get in touch with the form above for a free exploratory conversation.

*Lending criteria applies


Kicking off the process of reviewing your home loan is simple and we can check if cashback may be a possibility. Request a no obligation chat with a mortgage expert today.


Incredibly easy!

Our mortgage advisors are EXPERTS.  They live and breath home loans and will make getting you and your family the best possible mortgage incredibly simple!

Compare multiple providers

Our advisors will gather multiple quotes and compare home loans, rates and features from a range of NZ's top lenders. Helping you make a fully informed choice without the legwork!

Money back in your pocket!

You may qualify for cashback, but whatever your situation, our aim is to reduce your overall payments and get more money back in your pocket!  Meaning you pay off your home loan quicker!