EBS to offer 3% cashback for new mortgage customers

You've been bringing your lunch to work for months, there hasn’t been a Saturday where you haven't been traipsing around open houses, and after all this you finally get your mortgage, you move in...but your house has no furniture and you can't afford to buy any!

So some good news for prospective first-time buyers as EBS has announced today that it will be offering up to 3% cashback on its new fixed and variable rate mortgages for first-time buyers, movers and even switchers. This is up 1% from their previous offer of 2% cashback.

Get up to 3% mortgage cashback

The first 2% will be made available when the mortgage is drawn down with a further 1% being made available after five years.

This means you could be getting as much as €3,000 for every €100,000 you borrow. So if you're borrowing €300,000, you'll get a total of €9,000 back in cash after five years. 

EBS, which is a subsidiary of AIB, now match Bank of Ireland, who also offer up to 3% cashback with their mortgages, while Permanent TSB offer 2% cashback.

EBS Managing Director Des Fitzgerald said: “The enhancement of the cashback offer along with EBS’s low fixed mortgage interest rates of 3% for 1 to 5 years, means that first time buyers and customers who choose EBS for their mortgage have an excellent value proposition in helping them find their home.

Our team of Mortgage Masters in 70 communities across Ireland work with people every day to help them achieve that dream of home ownership."

What are the EBS's current mortgage rates?

*Loan-to-value for new business

With the strain on the housing system at an all time high, any new developments which help buyers will surely be welcomed by consumers. 

However, it has been highlighted that mortgage cashback offers often cost buyers more in the long run, with a recent report from researchers in Trinity College saying that these deals can end up costing consumers as much as €30,000 more in the long run.

Some have even called for cashback offers to be banned. This is because mortgage lenders are competing in terms of upfront rewards like cashback offers rather than competing on more favourable rates for the consumer, which would benefit them more in the long term.

So what do you think?

Are you currently looking for a home? Is this good news for you?  Get in touch as we would love to hear from you.

And remember you can compare interest rates and cashback incentives across all lenders on bonkers.ie with our easy-to-use mortgage calculator.