Mortgage cashback offers explained: How mortgage cashback works in Ireland
If you've been researching mortgages in Ireland, you've probably come across the term mortgage cashback. In simple terms, a cashback mortgage offer is a mortgage that gives you a percentage of your loan amount back as a cash payment after you draw down. In Ireland, it is usually offered as either a fixed amount or a percentage of the mortgage value. Cashback can help with costs such as legal fees, moving expenses or home improvements, but it should be considered alongside the mortgage rate, repayments, features and total long-term cost. Some mortgages that offer cashback will be supported by higher interest rates.
Whether you're a first time buyer, moving home, or considering switching your mortgage, understanding how mortgage cashback works can help you make a more informed decision. In this blog, we'll explain what mortgage cashback is, how it works, its potential benefits, potential risks and what to consider before choosing your mortgage.
What is a cashback mortgage offer?
A cashback mortgage offer is one that includes a cashback incentive from the lender. In practice, the lender pays you a cash lump sum after your mortgage has been drawn down.
The cashback amount is usually either:
- A fixed amount, or
- A percentage of the total mortgage amount
For example, if a lender offers 2% cashback and you borrow €400,000, you could receive €8,000 after drawdown.
The cashback is typically paid directly into your bank account and can be used however you choose.
How does mortgage cashback work?
Mortgage cashback is generally paid once your mortgage has completed and the funds have been drawn down.
The exact terms vary between lenders, but the process is usually straightforward:
- Apply for and receive mortgage approval.
- Complete the purchase, move, or mortgage switch.
- Draw down your mortgage funds.
- Receive the cashback payment within the timeframe specified by the lender.
It's important to remember that cashback is an incentive rather than a discount on the amount you borrow. You will still repay the full mortgage amount according to your mortgage agreement.
What can mortgage cashback be used for?
One of the biggest advantages of mortgage cashback is flexibility. Unlike some incentives, there are usually no restrictions on how the money can be spent.
Many borrowers use their cashback to help cover:
- Legal and solicitor fees
- Moving expenses
- Furniture and appliances
- Home improvements
- Emergency savings
- General household costs after moving
For first time buyers especially, the first few months after purchasing a home can be expensive due to the long list of costs associated with buying a house. Cashback can provide additional breathing room during this period.
What are the benefits of mortgage cashback?
For many borrowers, the main benefit of mortgage cashback is that it’s a useful financial boost at a time when expenses are often at their highest. See below some benefits in full:
| Benefit | What it means |
| Help with upfront costs | Buying, moving, or switching a home can involve various costs beyond the mortgage itself. Cashback can help reduce the immediate financial pressure that often comes with these expenses. |
| Extra financial flexibility | Because the payment is received directly to your bank account, you can decide how best to use it based on your circumstances. |
| Useful for switchers | If you're considering changing lender, the cost of switching can sometimes put people off. Mortgage cashback may help offset some of these costs. |
| Available across different borrower types | Cashback offers are often available to: First time buyers, home movers, Mortgage switchers, and Top-up mortgage customers (subject to lender criteria). |
If you're exploring whether switching mortgage could be right for you, our guide on the benefits of switching mortgage may also be useful.
What are the potential risks of a mortgage that offers cashback
While cashback can help with immediate costs after buying or switching, it should not be treated as free money. The key question you should ask is whether the mortgage remains competitive after the incentive and all longer-term costs are taken into account. Certain cashback offers may be supported by higher interest rates etc.
In short, you should always consider the entire mortgage cost when making your decision. Current offers and conditions change regularly, so the lender’s latest terms should always be checked.
Is cashback the most important factor when choosing a mortgage?
Not necessarily. While mortgage cashback can be attractive, it should form part of a wider comparison rather than being the only factor you consider.
When comparing mortgages, it's worth looking at the following:
| Factor to compare | Why it matters |
|---|---|
| Interest rate | A lower rate may reduce your monthly repayments and total cost over time. |
| Monthly repayments | Helps you understand what you can afford each month. |
| Fixed or variable rate options | Affects how predictable your repayments are. |
| Flexibility features | Some mortgages may offer flexible product features that give you more choice in how you manage your mortgage or how the rate is calculated, depending on the product and lender criteria. |
| Overpayment options | Overpayments (if available) may help you reduce your mortgage balance faster and lower the total interest you pay over time. Check whether limits, fees or conditions apply. |
| Total cost over the mortgage term | Helps you compare the full long-term cost, not just the cashback amount. |
| Eligibility requirements | Cashback offers and mortgage rates may depend on your circumstances and lender criteria. |
A mortgage is a long-term financial commitment, so it's important to assess the overall value of a mortgage rather than focusing solely on the cashback incentive.
Mortgage cashback for first time buyers
For first time buyers, cashback can be particularly appealing. The costs involved in purchasing a first home often extend beyond the deposit. Legal fees, home insurance, furnishing costs and moving expenses can quickly add up. A cashback payment can help support some of these costs while allowing you to settle into your new home with greater confidence.
If you're starting your home-buying journey, our guides on how to buy a house in Ireland and mortgage requirements are useful places to begin.
Mortgage cashback for switchers
Many homeowners eventually ask themselves:
When can you switch mortgage?
In Ireland, you may be able to switch your mortgage to another lender, subject to that lender’s eligibility requirements and any costs associated with leaving your existing mortgage.
Avant Money has specific switching criteria, including requirements relating to the property, your repayment history and the loan-to-value ratio. Other lenders may apply different conditions. Read our mortgage switching guide for more information.
How long does it take to switch mortgage?
The timeframe varies depending on the complexity of the application, documentation requirements and legal process. Having your paperwork ready can often help move things along more efficiently.
If you’re considering switching with Avant Money, you can learn more about preparing for a mortgage application in our guide to mortgage application documents.
Fixed rate mortgages and cashback
Many cashback offers in Ireland are available on fixed rate mortgage products. A fixed rate mortgage means your interest rate remains unchanged for a set period, giving you certainty around your repayments during that time. This can make budgeting easier and provide peace of mind during the fixed term.
If you'd like to understand this type of mortgage in more detail, read our guide to fixed rate mortgages.
Mortgage cashback at Avant Money
At Avant Money, eligible borrowers can benefit from cashback across selected mortgage products.
- 2% cashback is available on eligible Fixed Term Mortgages*.
- 1% cashback is available on the One Mortgage**.
You can learn more about the cashback offering by visiting Avant Money Cashback Mortgage.
If you're particularly interested in Ireland’s only mortgage that remains fixed for the entire lifetime of your mortgage 1, you can also learn more about One Mortgage.
So, is it worthwhile to choose a mortgage that offers cashback?
Mortgage cashback offers can provide a valuable financial boost when buying, moving or switching home. For many borrowers, the extra cash can help with the practical costs that arise around a mortgage transaction.
However, cashback is only one part of the overall picture. It's important to compare mortgage rates, repayment options, flexibility, features and long-term costs before making a decision. Remember, some cashback mortgage offers may be supported by higher interest rates.
The right mortgage is the one that best supports your financial goals, both today and in the years ahead.
The above content of this blog is intended to provide general information only and does not constitute financial or professional advice from Avant Money. Readers should always seek independent professional advice and not solely rely on the information within the contents of this blog.
1 One Mortgage unique/only claim and claim of competitive follow-on variable rates based on comparison against competitor mortgage products as advertised on their websites at 1st August 2026. One Mortgage is designed to give a fixed rate for the full mortgage term (between 5 and 30 years), whereas competitor fixed rate mortgage products are designed to provide a fixed rate for a set number of years (between 1 and 10), following which they revert to a managed variable rate or a new fixed rate.
*2% Cashback incentive is available on eligible New or Top-Up Mortgages drawn down between 1 January 2026 and 31 December 2026. For phased drawdown mortgages, the cashback amount will be calculated based on the initial mortgage drawdown amount. Qualifying criteria and exclusions apply.
*Payment of 2% Cashback will be paid within 2 months of drawdown.
**1% cashback also available on a One Mortgage.
Lending criteria and terms and conditions apply. The monthly repayment on a 20-year mortgage with Loan to Value (LTV) greater than 80% with variable borrowing rate of 3.95% on a mortgage of €100,000 is €603.35 for 240 months. Total amount repayable is €145,028.74. If interest rates increase by 1% an additional €53.85 would be payable per month. For this example, Annual Percentage Rate of Charge (APRC) of 4.0% applies and consists of variable borrowing rate of 3.95%, valuation fee of €185, and security release fee of €40.
LTV is the amount borrowed as percentage of the value of your home. Information correct at 1st August 2026 and subject to change. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income (4.0 for first time buyers) and 90% of the property value (80% for switchers). Applications from residents of ROI over the age of 18 only, and subject to repayment capacity, financial status and property valuation. We require property and life insurance.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit report which may limit your ability to access credit, a hire-purchase agreement, a consumer-hire agreement or BNPL agreement in the future.
Warning: You may have to pay charges if you pay-off a fixed rate loan early.
Warning: If you do not keep up your repayments, you may lose your home.
Warning: Your interest rate may increase and the amount of your repayments may increase as a result.
Warning: You should consider the total cost of the mortgage and any applicable incentive included in a mortgage offer.
Bankinter S.A. trading as Avant Money, is authorised by the Banco de Espana in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.