6 ways to make the most of your home loan: from cashback to offset accounts

Looking to borrow for a house or planning to refinance? You need to read on!

When you've got the right home loan features, your home loan can be a valuable financial tool for a number of purposes.

Newcastle Permanent home loans

1. Score a cashback offer

Sometimes when you take out a new home loan or refinance your existing home loan, you may receive a cashback offer.

At the moment, if you apply for a new loan online or refinance an existing loan to Newcastle Permanent online, you can receive up to $3,000 cashback if your application is approved and funded.

You can use these funds for – well, pretty much whatever you want! You might funnel it straight back into the loan, use it to cover the costs of moving, or maybe even opt to get some new furniture for your place.

You can read a more detailed rundown of Newcastle Permanent's home loans right here on Finder, too.

2. Easy online applications

Being able to apply online can streamline the home loan or refinancing application process.

There's no more need to have to schedule your day around going into a branch or disrupting the rest of your day.

Newcastle Permanent allows you to apply online for a home loan or to refinance. So you can tackle things at your own pace.

Additionally, Newcastle Permanent allows you to track your home loan application in real-time – so you can be clear on exactly what stage you're at.

3. Additional repayments

While you're paying off your home loan, you might find that you suddenly have a financial windfall. Maybe you received an inheritance, got a significant salary increase or you're simply a savings powerhouse.

Paying back your home loan more rapidly means that you'll be able to save on interest costs. Not to mention paying the loan itself off more quickly!

One example of a lender that allows regular repayments and extra lump sum repayments is Newcastle Permanent.

Now, this might not sound like a big deal month-to-month. But over the lifetime of a loan, it can add up to thousands of dollars of savings.

Just make sure you check your loan details carefully, to avoid any extra repayment fees.

4. Redraw facilities

Just about everyone runs into a tight spot with cash at some point. Medical emergencies, unexpected expenses and more can all pop out of nowhere.

Obviously, it's good to have an emergency fund. But having redraw facilities can be a handy feature, to reduce the strain on your finances.

Redraw facilities allow you to pull out extra repayments that you've paid into your home loan, usually up to a preset amount. Although you don't want to rely on this feature all the time, it can come in handy in a pinch.

Home loans with the Newcastle Permanent allow you to redraw, with no minimum amount required.

5. Split loans

"Split loans" are pretty much what they sound like! You split your home loan into a number of different – but related – portions and pay them back as normal.

What's the benefit, you ask? Well, this type of loan allows you to take advantage of both fixed and variable interest rates while you're paying it back.

Let's say you went with Newcastle Permanent as a lender, for refinancing. You split your loan so that you've got a lower variable rate than you were previously paying, along with the attendant loan features (you can see some on this list) you want.

However, you also place part of the loan into a fixed-rate mortgage, which allows you to pay a preset amount each month.

In turn, this can make budgeting much easier while still offering you loan flexibility.

6. Offset accounts

Offset accounts are a fairly common home loan feature these days. But not every loan has them, so it's always worth checking.

Now, offset accounts sit adjacent to your home loan. Every dollar saved in your offset account reduces your loan amount temporarily, meaning your lender charges less interest.

You repay the same amount each month but you get out of debt faster – which saves you on interest charges. When you use it properly, an offset account can save you a significant chunk of money over the loan period.

Newcastle Permanent offers multiple offset accounts, meaning you can have several different accounts, all offsetting your home loan.

You can also pull funds out of it if necessary. However, it's not the same as a redraw; it's more akin to an everyday account.

Select Newcastle Permanent home loans include an offset account as a feature.

Discover more about home loans with Newcastle Permanent

Compare other home loan refinancing options here