Refinancing in 2025: Best Cashback Offers & Timing
After three rate cuts in 2025, many homeowners are reviewing their mortgage. With lenders competing aggressively for refinance business and cashback offers still available, now could be a good time to switch.
Current Cashback Offers
- Several lenders: Up to $4,000 cashback for refinancing
- Some online lenders: No application or ongoing fees plus cashback
- Major banks: Competitive rates with loyalty discounts
Note: Cashback offers change frequently. Check current offers with a broker.
How Much Could You Save?
On a $500,000 loan over 25 years:
- 0.25% rate reduction: Saves ~$1,250/year
- 0.50% rate reduction: Saves ~$2,500/year
- 1.00% rate reduction: Saves ~$5,000/year
Refinancing Costs
Common costs include:
- Discharge fee: $150-$400
- Break costs: May apply if leaving a fixed rate
- Application fees: $0-$600
- Settlement fees: $200-$500
Cashback offers can offset these costs, but always calculate the total benefit.
When Does Refinancing Make Sense?
- Your current rate is 0.5%+ above competitive offers
- Your fixed rate is ending and reverting to a high variable
- You want to access equity
- Your circumstances have improved (better rate available)
Important Warning
Don't just chase cashback. A $4,000 cashback on a higher rate could cost more long-term. Always compare the total cost including rates, fees, and features.