Refinancing in Late 2025: Best Cashback Offers and When to Switch
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.