Lenders sometimes offer things like discounted interest rates, promotional introductory interest rates and sign-up incentives such as cashback offers, rewards for switching, gift vouchers, and more to encourage customers to choose their bank.
While these offers can be attractive for some customers who are on the lookout for a home loan it may not be worth signing up for a particular product solely for a special deal.
The fundamental aspects of the loan, such as ongoing interest rate, fees and features, are still important considerations.
Cashback sales & promotions
Cashback offers typically involve a lender offering you an incentive to take out one of its products. You may receive this in cash, or it can be taken out of the fees you would otherwise be charged. You may also receive it in the form of gift cards for certain stores or brands.
Other Sales & promotions – rewards points, reduced rates, and lower fees
Other sales and promotions offered by lenders allow you to take advantage of various other bonuses such as lower interest rates (fixed and variable), reduced or waived fees and bonus rewards points in some cases.
Consider comparing different home loans before committing.
It may not be in your interest to pick a lender and its product because the sign-up offer looks good. A $1,000 bonus when you take out your loan may not ultimately prove to be good value if you are paying an interest rate that is higher than you could find elsewhere.
It is a good idea to compare different home loan products and their costs across the life of the loan and decide which home loan is best for you based on what you need, even if it doesn’t have a sign-up offer attached.
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