Will banks be able to process applications qualifying for cash backs in time?

Questions are being asked about whether banks offering 1.5% cash backs will be able to process the volume of applications in time.

Monday, December 1st 2025, 12:06PM

by Sally Lindsay

ANZ ignited the mortgage wars as the first bank to offer the incentive until December 15. The other main banks have followed.

While commercially the cash back makes sense for a lot of home loan borrowers, banks are offering it in a limited window and advisers are wary about their ability to fulfil the volume of applications expected.

To qualify for ANZ’s cash back loans must be documented between November 18 and December 15, and the cashback is only paid once the loan actually draws down.

AdviceHQ founder David Green questions whether the ANZ and other banks are going to be able to process the additional applications within the windows they have.

His business has a number of clients applying for new mortgages that will qualify for cash backs.

“My concern is the banks won’t be able to process all the applications in the promotional window.”

To get the 1.5% cash back advisers will have had to prepare a borrower’s loan application, submitted it to the chosen bank, had it approved with few questions asked, confirmed the loan structure with the client and documented it to the client’s lawyer.

“There are only a few weeks to get that done. It’s a very short window.”

Green says while banks’ loan processing times have recently improved, they still have a long way to go. They also get more “picky” about the type of business they're writing when they're under pressure like this.

“What we find is when banks are doing this sort of promotion they'll close off certain things, such as pre-approvals to borrowers who don’t have a 20% deposit.”

He says the ANZ, for example, can only process applications until December 15 and those that are submitted only a day or two before the close off date are probably going to miss out.

Eligibility criteria are also tight

Borrowers must take out a completely new home loan and have at least 20% equity, provide new residential security, stay with the bank for three years and accept clawbacks if they repay the loan early or switch to another bank. Those wanting a top-up or are refixing an existing loan do not qualify.

Green says whether there will ever be another bank promotion offering a 1.5% cash back is debatable.

“When the ANZ launched its offer it possibly thought the other banks would not match.

“You’d have to question its decision now the other banks have climbed on board with their own promotions.”

He says banks do different things for different reasons at different times of the year depending on where they are at with their numbers.

He says whether ANZ repeats its cash back offer will depend on the number of new customers it attracts.

“There is no point in a bank doing this stuff unless it is benefiting from it.

“The ANZ is here to make money and if it finds this is a better way to gain volume then that's the name of the game.

“It obviously impacts its margins so it needs to get the corresponding increase in volume to make it worthwhile. If all the other banks are matching the ANZ, then potentially that takes away some of that benefit.

Green says, however, the timing couldn’t be better for home buyers or borrowers prepared to switch banks to grab a decent cash back and also a good interest rate. “They go hand-in-hand and we are probably at the bottom of the interest rate cycle.”

Tags: ANZ