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The ‘cheap’ mortgage refinance deals that cost borrowers more

Cashback offers to change lenders could end up hitting a borrower with thousands of dollars in extra fees and higher rates. Here’s how to avoid them.

Paying off a home loan in retirement is a good strategy as debt is always a higher risk.  Shutterstock

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Property borrowers who switch loans to cash in on lucrative cashback offers from lenders could end up thousands of dollars worse off after including fees, charges and tougher terms.

Dozens of lenders are offering cashbacks, ranging from VicBank’s $1500 to $5000 from Reduce Home Loans, with the big four lenders averaging about $2500, analysis by financial comparison site RateCity shows.

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Duncan Hughes
Duncan HughesReporterDuncan Hughes is a Walkley award-winning personal finance reporter, based in our Melbourne newsroom. Connect with Duncan on Twitter. Email Duncan at [email protected]

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