Canstar explores the current mortgage cashbacks on offer from the banks, and checks to see how the deals stack up.
Mortgage Cashbacks
While some banks make a big show of their first home buyer deals, it’s worth noting that regardless of whether you’re buying a first home, or refinancing, it always pays to shop around and compare deals.
Banks’ websites usually just advertise their standard mortgage rates, not the best deals they offer to customers with 20% deposits and good credit ratings. And, in the same way, banks don’t show their hands when it comes to their cashback deals.
But most are prepared to offer cashback deals of up to around 1% on new residential lending. Remember, if you don’t ask, you don’t get… so always push for the best deal possible.
However, seven lenders are currently advertising cashback deals specifically for first home buyers (FHBs):
Compare with Canstar for the Lowest Mortgage Rates
The table below displays some of the 2-year fixed-rate home loans on our database (some may have links to lenders’ websites) that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Products shown are principal and interest home loans available for a loan amount of $500K in Auckland. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
Compare home loan rates for free with Canstar!
FHB Mortgage Cashbacks
ANZ
ANZ’s cashback offer is for FHBs taking out new home loans of at least $200,000. There’s a cashback of $5000, as long as you keep your mortgage with the ANZ for at least three years.
ASB
ASB is also handing over cash to FHBs: $5000, if you take out a home loan of $200,000 or more with the bank for at least three years.
BNZ
BNZ offers a cashback of $5000 for FHBs who take out a mortgage of at least $250,000 for a minimum of three years.
SBS: Canstar’s Bank of the Year: First Home Buyers
Last year, SBS Bank won our Bank of the Year: First Home Buyers Award for the third year in a row, due to its great FirstHome Combo deal.
SBS Bank’s FirstHome Combo offers a range of benefits for customers who bundle all their banking, insurance and KiwiSaver products with the financial provider, including a $2000 cashback:
- Interest rate discounts
- $2000 cashback
- $1000 to help cover first year’s home and contents insurance premiums on policies with SBS Insurance
- $1000 in total towards mortgage holder(s) SBS Wealth KiwiSaver account(s)
The Co-operative Bank
The Co-operative Bank offers a 1% cashback (up to $15,000) on a FHB home loan of over $250,000. The offer is conditional on the loan staying with The Co-operative Bank for at least three years.
Unity
Credit union Unity is offering a $5000 cash contribution for FHBs on loans of $250,000 and above. Borrowers must have a minimum 20% deposit, or a 5% deposit if applying for a Kāinga Ora First Home Loan. Again, you’ve got to keep your mortgage with Unity for three years to keep all of the cash, and other Ts&Cs apply.
Westpac
Westpac offers a cashback of at least $3000 for FHBs who take out a mortgage of $250,000 or more. Ts&Cs apply.
Compare Travel Money Cards
Headed off overseas and looking for the best in money cards? Here’s a rundown of some of the most popular cards in New Zealand:
| Provider | Key Features | Main Fees |
|
• 150+ currencies • Free physical and virtual card (delivery fees apply for physical card) • Use anywhere Visa is accepted |
• No monthly fees (standard account) • Fee-free, instant transfers between Revolut users • Fee-free top ups for bank transfers and debit cards • Fee-free FX within market hours and plan allowance* |
  |
• 9 Currencies • Earn Airpoints Dollars • Use wherever Mastercard is accepted • OneSmart app |
• No load/reload fee for bank transfers • Monthly fee: NZD $1 (if funds in account) |
 |
• 140+ Currencies • Use wherever Mastercard is accepted • Cash Passport app |
• No load/reload fee for bank transfers • No monthly fee |
 |
• 9 Currencies • Use wherever Mastercard is accepted |
• No load/reload fee for bank transfers • No monthly fee |
 |
• 40+ Currencies • 2 free ATM withdrawals of up to NZ$350 per month |
• Receive and add money to your Wise Account for free • Physical card $14 one-off fee |
 |
• 9 Currencies • Use wherever Mastercard is accepted • Mastercard Priceless Cities benefits |
• Free overseas ATM withdrawals • No load/reload fee for bank transfers • No monthly fee |
The display order does not reflect any ranking or rating by Canstar. This information is not an endorsement by Canstar of travel money cards or any specific provider. Information correct as of 14/04/25. For full pricing details see individual providers’ websites. *Weekend fee will apply outside exchange market hours if it is made between Friday 5pm (New York time) and Sunday 6pm (New York time), which is a US based time zone
Mortgage Cashbacks: Are they Worth It?
Free cash is great. But banks are not renowned for giving away anything for free. So before you get excited about a 1% cashback, it’s worth considering what it’s likely to cost you.
Most of the cashback deals require you to be locked into a mortgage with the bank for a set period. You get the cash upfront, and the bank then spreads the cost of that cash lump sum over the next three to four years. So if you refinance with another lender during that period, it’s likely that you will have to repay a percentage of your cashback.
You should also factor in the size of your loan and the interest rate you are being charged.
For example, the average FHB mortgage is currently around $550k. So if you’re getting the maximum $5k cashback listed above, it works out to around 0.91% of the average FHB loan sum. So even without a cashback offer, if you can secure a mortgage rate that’s 100bps lower than the cashback provider’s rate, you’ll save in interest charges.
So, ultimately, choosing a lower overall rate, rather than the enticement of a cashback, could work out a better deal.
About the author of this page
Bruce Pitchers is Canstar NZ’s Content Manager. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery puzzle book 5 Minute Murder.
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