There is a really competitive market at the moment and a lot of banks and lenders are offering cash back, for you to leave your current bank to go and refinance with them.
At the moment, the cash bank offers range from 2000 up to 3000 dollars. And I really wanted to talk about why that’s important and why sometimes it might be important to disregard a cashback.
Now, look, if you’re already looking to refinance and the bank that you’ve chosen is offering you a great package that suits you or benefit that you’re looking for, and it comes with a cash back offer that is fantastic. It is icing on the cake really. And it’s going to help cover a couple of small costs when it comes to refinancing.
But where you need to be particularly careful is if you were to refinance your loan purely based on cash back offers. And the reason I say this is for two reasons.
Cash back offers are until a set period of time. And you may not always meet these markers, which means if you select a lender based on their cashback offer and you don’t qualify in the end for the cashback, then effectively you’ve chosen the wrong bank and you’re potentially stuck there.
The other thing to be mindful of is if you’re selecting a lender purely based on a cashback offer, they may not be the best lender that is going to suit your needs now and into the future.
When you talk to your mortgage broker about your loan options, it will be centered more around what you’re looking to do and what’s most important to you now and in the future. And that way, your mortgage broker can piece together the best options for you. And like I said before, if it comes with a cash back offer, that is fantastic.
It’s icing on the cake. And if it doesn’t come with a cash back offer, then there’s another really important reason that your mortgage broker is recommending it.
If you’re wanting to have a chat about what interest rates are doing at the moment or what you could potentially be saving on your current loan, then make sure you book a free Zoom appointment with me – https://calendly.com/360mortgagesolutions/video-conference