Home loan sweeteners disappear

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By Tamsyn Parker

Offers by banks to pay cash lump sums to people who take out home loans are disappearing, and tougher stress tests are making it harder to meet lending criteria, says a major mortgage broker.

Mike Pero Mortgages chief executive Mark Collins said cashbacks were getting smaller and harder to get.

Collins said six months ago home-buyers were able to get $5000 to $7000 in cash from their bank by switching or taking out a new mortgage.

“5k was the average six months ago. And now we are probably getting more zeros.”

It was still possible to get a cash sweetener but it was likely to be between $3000 to $5000 and only for the right client and from certain banks, Collins said.

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