Does a cashback really save you money?

With 2023 now upon us and the cost of living on the rise, you might be reassessing your finances to see where you could save yourself some money

It’s likely you’ve seen many financial institutions advertising cashback deals to encourage you to refinance or take out a new home loan with them . It sounds like a sweet deal and while extra cash in your pocket is never a bad thing, will chasing a cashback save you money in the long run?

What many of these financial institutions are not advertising is that they often still charge a hefty annual package fee with your home loan This means the money that you might save in the beginning will whittle down in fees down the track

For example, a $2k cashback sounds great but with many banks charging annual package fees up to $395, a 30-year mortgage will cost $11,850 in annual package fees alone, along with any other applicable initial application fees So that cashback which first seemed attractive starts diminishing in value very quickly

It’s important to ensure you critically review rates offered by other banks, particularly comparison rates Comparison rates reflect the actual annual interest rate, together with the loan amount, the term of the loan and the required repayments

This rate also includes many of the fees and charges associated with taking out the loan. It’s the rate you need to go by to give yourself an accurate representation of the money you will be paying when you take out a loan with this institution.

So, cashbacks might not be the exciting reward they’re advertised to be, but there is still a way you can save money with a home loan from Police Credit Union

When you refinance or take out a new home loan with Police Credit Union, we do not charge any monthly or annual fees over the course of your loan, ultimately saving you more money (even thousands) in the long term. What’s more, we pride ourselves on offering competitively low home loan rates that have the potential to save you money over the course of your loan compared to a higher interest rate with another bank that offers you a cashback

In even more enticing news, as a police officer, you receive exclusive benefits . As a Platinum member of Police Credit Union, you receive 0.10% off selected home loans as well as no package fees, priority loan approval and more!^

You also have direct and personal access to your very own relationship managers, Glenn Lewis and Ryan Mountford, who have years of banking experience They are more than happy to personally discuss your home loan options to find the best deal for you Get in touch with them today at platinum@policecu com au, or call Glenn on 0421 243 741 or Ryan on 0437 286 804 .

Visit policecu .com . au to find out more about our competitively low home loan rates and the other benefits you are entitled to as a Platinum member

Police Credit Union Ltd (PCU) ABN 30 087 651 205 AFSL/Australian Credit Licence 238991. Terms, conditions, fees, charges, lending and membership criteria apply. Full details upon request. All information is correct and current as at 27/12/2022. The information provided herein does not take into account your personal needs, objective and financial circumstances. Please consider your circumstances before deciding if the product is right for you. PCU reserves the right to withdraw offers or amend product features at any time. Information provided in this article is designed to be a guide only and was believed to be correct at time of publication and derived from various media sources. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither PCU, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article. ^Excludes special offers.