You only need to Google “cash back mortgages” or “cash back home loans” to realise that there are many different kinds of cash back mortgage offers around. So how do you know which cash back offer is the right one for you and whether it will save you more money over the long term than a lower interest rate loan?
At Mates Rates Mortgage Brokers we are proudly the original and the best cash back mortgage broker. We invented cash back home loans in 2005 and so far, we’ve paid more than $10 million in cash back to people just like you!
Because we always work for you, the customer, NOT for the banks or the other lenders, we created our “Lender Commission Leveller” which is unique to cash back offers and the mortgage broking market.
Our Mates Rates Mortgage Brokers Lender Commission Leveller provides a level playing field that ensures no home loan lender is left out of consideration, regardless of the amount of commission they pay us. And it’s a model that guarantees we will find the best loan for you, regardless of the percentage of commissions the lender pays us.
If the upfront commission is lower than 0.65%, you can nominate for the difference to be deducted from the lender paid trial commissions, as soon as the LCL is recovered the cash-back will commence.
This Lender Commission Leveller ensures that our recommendations are fair-dinkum because we are not affected by the commissions the lenders pay to us. No matter which lender you choose, we are always paid the same.
Because our cash back home loan is very different to other kinds of cash back deals on offer from other lenders or Cash-Grab mortgage brokers, we’ve summarised the differences between the types of cash back mortgages, helping you to find the best cash back deal for your home loan.
| Type of cash back refinancing home loan | Mortgage broker compares rates from lenders and organises home loan at no additional cost to you | Lowest interest rate guaranteed for the biggest overall savings on your home loan | Estimated cash back savings over the lifetime of a $500,000 home loan | Combined cash back and compound interest savings over the lifetime of a $500,000 home loan |
|---|---|---|---|---|
| Mates Rates Mortgage Brokers Trailing commission cash back offer |
|
Our unique “Lender Commission Leveller” model ensures we always offer you the best interest rate, regardless of the commission the lender pays us
|
$10,102.82 | $18,854.20 in total if cash back is paid into the home loan as received |
| Refinancing lump sum cash back offer direct from from lender |
|
No guarantee the cash back deal offers you the best interest rate
|
Lump sum $600 – $4000, depending on size of cash back offer from lender | No guarantee the cash back deal offers you the best interest rate |
| Upfront commission cash back offer from mortgage broker |
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No guarantee the cash back deal offers you the best interest rate
|
$3000 | Lump sum payment so no compound interest advantage |
| Trailing commission cash back offer from mortgage broker |
|
No guarantee the cash back deal offers you the best interest rate
|
$10,102.82 | $18,854.20 in total if cash back is paid into the home loan as received |
*Savings comparisons in this chart are based on a 5.09% interest rate for a $500,000 home loan paid over 30 years – savings will vary if interest rates change and if the length of the home loan changes.
The most common cash back offers are a marketing incentive that gives you a one-off lump sum payment of anywhere between $1000 – $5000 at the start of your home loan, depending on the lender. This type of cash back offer is designed to either lure you to switch lenders by covering the cost of refinancing or designed to entice you to sign up with a specific lender for a brand new home loan.
While receiving a lump sum of thousands of dollars can be very enticing, unfortunately it often costs you more in the long run because these lump sum cash back offers are made by the lenders themselves, instead of a mortgage broker who has compared different loans from different lenders.
With a lump sum cash back offer you don’t necessarily know you’re getting the best interest rate – don’t forget that over the term of a home loan you will always save more with a lower interest rate rather than a lump sum cash back offer that comes with a higher interest rate home loan!
If you think a lump sum home loan offer looks tempting, give Mates Rate Mortgage Brokers a call and let us compare home loan lending rates and cash back offers at no additional cost to you, ensuring you always get the offer that saves you the most over the life of your home loan.
All mortgage brokers receive both upfront and trailing commissions from banks and other lenders when they secure a home loan for their clients. Some mortgage brokers offer the upfront commission they receive as a cash back offer, either as a single lump sum payment or over two instalments.
Just like the lump sum cash back offer offered by the lenders themselves, an upfront commission cash back will not save you as much money over the life of your loan as a trailing commission cash back offer from a mortgage broker.
Mortgage brokers who offer you a trailing commission cash back, pay you the broker’s “trail” commissions every single month for the life of your loan, instead of just a lump sum payment at the start of your loan.
With a trailing commission cash back offer, you end up receiving a higher amount of cash back over the life of your home loan and if your cash back is paid into the home loan as received you’ll also save additional thousands of dollars on compound interest as well!
At Mates Rates Mortgage Brokers, we not only offer you a trailing commission cash back that affords you the compound interest benefits over the life of your home loan, but we also go one step further in guaranteeing you the best savings over the life of your home loan.
Our “Lender Commission Leveller” is unique to cash back offers and the mortgage broking market, providing a level playing field that ensures no lender is excluded from recommendation because they pay less commission. This means you always get the best deal, guaranteed, because we get paid the same, regardless of the upfront and trailing commissions.
And by paying you ALL of the ongoing trail commissions each month and every month for the life of your loan, we save you tens of thousands more dollars and also afford you compound interest benefits over the term of your home loan.
Could you be getting a lower interest rate, paying off your home loan faster or building equity and earning cash back for the life of your home loan?
To instantly find out just how much you can save with our Mates Rates Mortgage Brokers cash back offer, visit our cash back calculator, or get in touch with our friendly team today.
