P&N Bank has a new $3,000 cashback offer, and it’s not just for mortgage refinancers
Western Australian-based P&N Bank has joined a growing list of Australian lenders offering extra incentives to home loan customers with the launch of a new cashback offer.
Announced yesterday, the customer-owned bank will provide new mortgage customers with $3,000 cashback when they take out a loan which is worth $250,000 or more and has a loan-to-value ratio (LVR) of 80% or less.
In addition to being available to owner occupiers and investors, P&N’s cashback offer is available on both new and refinanced loans - a distinction which senior manager of retail distribution, Gemma Hay, says is unusual.
“Cashbacks are typically only available for customers who are looking to refinance from other banks, and P&N is one of the few banks in Australia to also extend a cashback offer to customers looking to purchase a new home."
This point is confirmed by our own data. Of the 25 cashback offers available from lenders being tracked in the Mozo database, the vast majority are only available to refinancers. In fact, one of the few exceptions is the cashback deal of up to $5,000 currently being offered by fellow customer-owned bank BCU - a subsidiary of P&N Bank.
While the promise of a cash incentive may be appealing to many borrowers, a recent Mozo analysis found that other loan features may be worth prioritising when it comes to saving money - namely, getting the lowest interest rate possible.
So on that front, how do P&N Bank’s home loan rates stack up? Here are two examples:
& Basic Home Loan
P&N Bank’s & Basic Home Loan is a low-cost option available to owner occupier borrowers who aren’t fussed about having features like an offset account. As the table below shows, its variable rates at the <80% LVR tier are considerably lower than our database average.
| Variable rate | Mozo average | |
| Owner occupier (60-90% LVR) | 2.49% p.a. (2.49% p.a. comparison rate*) | 3.14% |
Fixed Rate Home Loan
P&N Bank’s Fixed Rate Home Loan is another relatively low-cost option, this time for borrowers looking to lock in a rate for 1-5 years. Again, as the table below shows, it’s rates for owner occupiers (<80% LVR) are currently all lower than our database averages.
| Fixed rate | Mozo average | |
| 1-year | 2.09% p.a. (3.71% p.a. comparison rate*) | 2.29% |
| 2-year | 1.99% p.a. (3.54% p.a. comparison rate*) | 2.24% |
| 3-year | 2.09% p.a. (3.42% p.a. comparison rate*) | 2.34% |
| 4-year | 2.39% p.a. (3.38% p.a. comparison rate*) | 2.58% |
| 5-year | 2.69% p.a. (3.40% p.a. comparison rate*) | 2.81% |
To sum up, while there are certainly lower rates out there, the two loans outlined above are both offering competitive interest rates - at least, compared to other loans being tracked in our database. There are also a number of other loans on offer from P&N, which you can view for yourself at our P&N Bank home loans hub.
RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan
Ready to see if you can grab a better deal on your own mortgage? See how it stacks up against some of the hot refinancing deals listed in the table below, or head on over to our refinance home loan comparison table to compare it to even more offers from a larger selection of lenders.