As the situation seems to get normal after the effects of Coronavirus is decreasing day by day, banks are trying to lure the customers to refinance by giving the customers cash for refinancing.
These offers are coming in the form of incentives and cashback to the customers. As everyone is quite short on money right now, everyone is looking for some good deal whether it be a home loan or any other transaction. So, the banks are making it easier for the customers to get home loans.
The rate of refinancing is increasing day by day because people are looking for cheap interest rates and the banks are providing the same.
People are seeking the best offers and it can be proved by the data of the Australian Bureau of Statistics. The data shows that around 113,000 people have changed their lenders in the last four months.
According to Sally Tindal (the director of RateCity), bankers are always looking for refinancers because the refinancers are considered more stable borrowers.
Refinancers have gained such a reputation because all those people who are able to refinance have a good record of paying their debts, and a steady job. These two factors alone are enough to make them stable. There are over 22 lenders who are offering cashback up to $4000. Many financial experts are saying that such offers are more effective in uplifting the economy as compared to providing cash incentives. Most of the banks in such offers have quite competitive rates which would help the people in getting cost-effective loans right now.
Take a look at the list of the banks and their efforts to correct this situation:
NAB, Westpac, Commonwealth Bank will provide $2000 to all the new customers and at the same time, ANZ will give $3000 to its refinancers.
Suncorp is offering the frontline workers of COVID-19 up to $4000 if the workers want to refinance.
The same is the case with Bank of Melbourne and St George that are also offering up to $3000 cashback for refinancers.
After seeing this, you can easily conclude that the banks are fighting hard to tackle this issue on many fronts.