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.
Canstar’s research has found that all the big banks, and the smaller NZ ones, are offering cashback deals of around 0.7% to 1% on new residential lending.
If you don’t ask, you don’t get… so always push for the best deal possible.
However, six banks are currently advertising cashback deals specifically for first home buyers (FHBs). And credit union Unity is offering cash to any punters taking out a new mortgage with them. See below for details.
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!
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 $3000 for FHBs who take out a mortgage of at least $200,000 for a minimum of three years.
SBS: Canstar’s Bank of the Year: First Home Buyers 2023
Last year, SBS Bank won our Bank of the Year: First Home Buyers award for the second 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:
- $2000 cash to help cover the costs connected to purchasing your first home
- 1% off the bank’s 1-year fixed interest rate
- $1000 to help cover your first year’s home and contents insurance premiums on policies with SBS Insurance
- $1000 top-up for Lifestages KiwiSaver Scheme account(s)
- 12 months free Everyday Fibre 300/100 broadband plan with Pulse energy if you sign up to power/broadband bundle with the provider
The Co-operative Bank
The Co-operative Bank offers a 1% cashback (up to $20,000) 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 30 months.
Unity
Credit union Unity is offering a $5000 cash contribution for FHBs with a loan of $250,000 and above, for lenders with a minimum 20% deposit. Again, you’ve got to keep your mortgage with Unity for three years to keep all of the cash, and other T&Cs apply.
Westpac
Westpac offers a cashback of at least $3000 for FHBs who take out a mortgage of $250,000 or more. T&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 |
|
• 37 currencies • Spend in 150+ countries • 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) |
 |
• 10 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 05/09/24. 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 1% 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. And if you refinance during that period, you have to repay a percentage of your cashback.
You should also factor in the interest rate you are paying on the cashback mortgage. Is it higher than what’s available elsewhere? If you are receiving a 1% cashback over four years, is the interest rate 0.25% higher than you could secure elsewhere?
At this point, it’s worth pointing out that the average difference between the lowest and highest interest rates on Canstar’s database, across all fixed mortgages, from one to five years, is 0.6%. 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
This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.
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