Refinancing·8 August 2026·1 min read
Is a refinance cashback actually worth it?
A $4,000 cheque feels good. Over five years, thirty basis points feels a lot worse.
Cashback offers are marketing spend, not generosity. That doesn't make them bad — it just means they should be assessed as one line in a comparison.
On a $700,000 loan, a rate difference of 0.30% costs roughly $2,100 a year in interest. A $4,000 cashback is consumed in under two years.
The offer is worth taking when the underlying rate is competitive anyway. Then it's genuine upside.
Always net out discharge fees, new establishment costs and valuation charges before comparing.
General information only. This article does not take your personal circumstances into account and does not constitute credit advice.