Canstar’s July refinance offer update shows that several lenders are still using upfront incentives to attract refinancers. Offers include cashbacks of several thousand dollars from selected banks and customer-owned lenders, alongside rewards-based deals such as points offers for eligible borrowers. Some deals are open-ended, while others have clear expiry dates later in 2026. Most also come with conditions around minimum loan size, loan-to-value ratio, settlement timing and whether the borrower is refinancing from a related lender.

For borrowers, the key message is that a cashback can be useful, but it should not be treated as a shortcut to a good home loan. A one-off payment may help offset discharge fees, application costs or valuation charges, yet a higher interest rate can quickly outweigh the benefit. On a large mortgage, even a small rate gap can add thousands of dollars in extra interest over time.

This is where disciplined comparison matters. Before accepting an incentive, homeowners should look at:

• the advertised rate and comparison rate, not just the cashback amount;
• ongoing annual or package fees;
• whether offset, redraw or extra repayment features are included;
• the minimum loan size and maximum LVR rules;
• how long it takes for the cashback or rewards to be paid;
• whether break costs apply if the current loan is fixed.

This story also extends our recent coverage of rising mortgage pressure. When rates are high, switching can be a sensible strategy, but only if the new loan improves the borrower’s position after all costs are counted. A cashback may be attractive, but the real win is usually a lower long-term repayment burden, better flexibility, or loan features that suit how the household manages cash flow.

Borrowers considering a move should compare refinancing options across both rates and features, then test the numbers with a refinance calculator. The most valuable deal is not always the one with the biggest bonus; it is the one that leaves the borrower better off after the promotional payment has been spent.