Refinance cashback offers in Melbourne: are they worth it?

What refinance cashback is

To win new borrowers, lenders sometimes pay a lump sum — often $2,000 to $4,000 — when you refinance to them. It's deposited after settlement and is yours to keep.

For most Melbourne borrowers, a typical cashback comfortably covers the $500–$1,500 of switching costs, often leaving money left over.

The trap: cashback vs the rate

A $4,000 cashback sounds great, but if it comes with a rate 0.3% higher than a no-cashback competitor, on a $600,000 loan that's about $1,800 extra interest every year — wiping out the cashback within two years.

Always compare the total cost over the time you'll keep the loan, not just the headline cashback. A broker does this maths automatically.

How to judge an offer properly

• Compare the comparison rate, not just the cashback amount.
• Check for ongoing or annual fees that erode the benefit.
• Confirm the cashback eligibility conditions and minimum loan size.
• Model the total cost over 2–3 years, including the cashback.

Let a broker stack the deck

Brokers see cashback offers across 40+ lenders and can find deals that pair a sharp rate with a healthy cashback — the genuine best of both.

Use our refinance savings calculator to see your rate-driven saving, then add cashback on top for the full picture.