Hi Brendan
Yes, I would favour a blanket ban on all cash incentives associated with home loans.
They are really just a mechanism to allow lenders to advance bigger loans to customers at higher interest rates - there is certainly no free lunch for borrowers!
We are the only country that I am aware of where cash-back incentives are common place. In most countries borrowers have to pay a fee to a lender to process a loan. This makes sense as there is a significant administrative cost to the lender to carry out credit checks, arrange valuations, review documentation, etc.
Why are we so out of step with other countries in this regard? Customer preference probably forms part of the explanation but in my opinion the Central Bank's LTV requirements is the key driver.