That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Why Switching Banks Now Could Put Thousands In Your Pocket
Want thousands back when you switch or buy? We break down the rare 1.5% cashback offers rolling out across major New Zealand banks and show how to capture the benefit even if your settlement won’t land until the new year. The key is understanding the power of “documented” before the lender’s December cutoff and using that window to lock in your deal.
Across the conversation, we map the evolution of cashback in New Zealand lending—from modest legal-fee rebates to percentage-based incentives that now change the refinancing equation. We get practical about eligibility, including the 20% equity or deposit criteria, and walk through the different lender deadlines. You’ll hear how documentation works, why loan documents typically stay valid for 60 to 90 days, and how that timing gives you breathing room to organise your move, manage contractors, or wait out the slow holiday market.
We also run the numbers on real scenarios. One client uses the cashback to neutralise hefty break fees while dropping from around 7% to near 4%, freeing up cash flow fast. Another couple leverages the lump sum to carry their old home without tenants for a few months, buying time to prepare the property and avoid the Christmas lull. Even after solicitor fees, many borrowers keep a meaningful surplus, turning a stressful switch into a smart, cash-positive decision.
If you’re considering a refinance or a bank switch, this guide helps you compare total value: headline rates, cashback, clawback terms, and timing. We share tactics for submitting complete files, coordinating with your lawyer, and navigating temporary pauses on pre-approvals as lenders prioritise refinances. The window is short, but the upside is real—secure the paperwork, protect your dates, and let the banks fund your summer reset.
Enjoyed the chat and want more smart money breakdowns? Follow, share with a friend who’s debating a refinance, and leave a quick review so others can find the show.
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Do you want an extra three and a half thousand dollars in your pocket? Then listen up. Hey Kunch. Kyota, how are you? Wonderful. We have amazing deals from the banks at the moment. Let's talk about that.
SPEAKER_00:Yes. So right now the banks are giving away 1.5% cash back.
SPEAKER_01:Never in our history of being in finance, we've seen that.
SPEAKER_00:It's actually so cool. So amazing. Like, how long have we been in here? 20 years, and this is the first time I've seen 1.5.
SPEAKER_01:Yeah. Yeah. Back in the day, it started. Well, back in the day, let's go back a little bit. Back in the day, cashback was never really a thing. No. Right? Then suddenly someone decided, okay, let's reward clients by paying them back some of their legal fees. So the cashback, when I remember it came up, was$1,000. Yes. Yeah. And that was the cap. And that was paid to your solicitor for the solicitor fees. Yes. Then somehow they started to push and push and push.
SPEAKER_00:Well, it increased, didn't it? So it was like, you know, every summer or every spring there was a special. And it'd be an interest rate plus a$2,000 cash back. And then it will increase again the next spring and plus$3,000 cash back. Yeah. And then it keeps evolving to 0.5 of the loan. Yep. I remember 0.5. Yeah. And then it went to 0.8. Then we saw 0.9. And then at COVID times, I remember$1%. 1%.
SPEAKER_01:Yep. And that was the highest. Yes. 1% cash back. However, I did mention that to you, and you were like, I didn't know that. When I was building my house with Westpac, Westpac was offering 2% cash back on new builds. Yeah. But that was to counterfect that ANZ and ASB were offering discount on their floating rates if you were building. Yes, so they had the back my build or the blueprint loans. Which was like 1.5% interest. Which again, unheard of. So that was the only time I remember cashback being this high. But for normal everyday folks, it was just sort of capped around 0.5 to 1% cashback. Now, all of a sudden, last week ANZ comes up and goes, hey guys, we're going to give you extra money for Christmas. But there are T's and C's. Yes. So let's quickly dive into that.
SPEAKER_00:So the T's and C's are you have to have 20% equity and or deposit. Or deposit.
SPEAKER_01:For a lot of our new buyers, you can also qualify for this deal if you have 20% deposit. Yes.
SPEAKER_00:But it has to be documented before a certain date. So the ANZ at the top of my head is the 16th of December. Correct. This year, 2025. So the loan has to be documented then. So keyword is documented. If you settle after document, it's still honored.
SPEAKER_01:Yes. So a lot of people don't realize when we document the loan, it means we're advising the bank to prepare your loan documents that you go and sign with your lawyer. But the settlement, that's when actually you get the loan, doesn't need to happen until two or three months later. Correct. Because the loan documents usually last 60 to 90 days, depending on the bank. Correct. Now, WestPec and ASB and BNZ came to the party and they have slightly longer terms. Kiwi Bank as well. Ah, Kiwi Bank as well. Interesting. They have slightly longer terms, which is 16 to 18th. 18th and 19th? 18th and 19th century.
SPEAKER_00:So because they came to the party, they've given that extra week or few days. Documented. So again, just needs to be documented and sent out to your lawyer. You could even sign after the new year, and then the loan settles within, like you said, 60 to 90 days later.
SPEAKER_01:Yeah. So what we're busy with at the moment is a lot of refinance deals. A lot of clients that have their loans coming up for renewal. This is the time to change banks. And look, I even have a client that has about 15k in break fees from their current bank.
SPEAKER_00:Yeah.
SPEAKER_01:And they want to change across because of this cashback. It's going to be a game changer and it's going to cover their break fees so they can go from 7% interest to 4% interest and save money and not really feel the pinch of the break fee. So absolutely, we're not the other scenario I have as a couple buying property to live in and they're going to rent out their house. But that cashback will allow them comfortably to not have a tenant for up to three months. Yeah. So they can prepare the property to be rented out and also allow for that lull season, you know, when it's quiet over Christmas and things like that. So cashback can be used in various ways. It's your cash to use the way you want to.
SPEAKER_00:Yeah, it's actually a really good incentive, especially at this time of year. Obviously, if you're refinancing or purchasing a property, you'd have to pay for the lawyer to execute that for you or the switch of banks and things like that. But if you minus that lawyer's fee of we say what, 2,000 to 2.5, you're still banking a bit of money for anything, really.
SPEAKER_01:Exactly. So we cannot stress this enough. I know.
SPEAKER_00:I wanted. How do I get it? Come and see me.
SPEAKER_01:And the the other thing that we've discovered was and that they sort of shoot themselves in the foot, didn't they? Because they've announced this offer and then they said to us, but we're close for pre-approvals. We can't do any pre-approvals for the short term. Yeah. Because they anticipate they're going to be inundated with the refinance applications. So get in quick if you are thinking, don't think, just do it.
SPEAKER_00:Just do it. Yeah, we've got a really short time frame now because we are in the last week of November. So we need to actually get that approval done and get it documented within three weeks. Exactly.
SPEAKER_01:So come on, people, let's go. Let's go. Thank you so much. And if you've got any questions, let us know. Bye.
