Banks Compete for Home Loan Customers

Posted on October 15th, 2013 · Posted in News

Cash-back deals, discounted rates, the waiving of fees and gift cards are among the many sweeteners financial institutions are using to lure new customers.  As competition gets fiercer among rival institutions, they are turning to bonus incentives to attract new customers.

Recent research shows the home loan market is where most banks are trying to entice new customers with bonuses.  Discounted rates of up to 1%, the waiving of hundreds of dollars in application fees, cash-back offers and even store gift cards are among the deals being offered to customers by the major banks and smaller lenders.

Customers should take care before signing up for a product simply because it offers an attractive incentive.  All that glitters is not gold, signing up on a home loan purely on a cash-back offer or a fee waiver could see you miss out on tens of thousands of dollars of savings that you could have got with a lower rate elsewhere.  They are nice one-offs but they are not going to help over the entire life of the loan, so the interest rate is the core. While a fee waiver or cash back may appear to provide immediate financial relief, the key is to find a combination of competitive pricing, product flexibility and a strong service proposition.

Unsure of all of the offers & products out there?  We’re here to Strengthen Your Financial Future.  Let us do all of the running around & hard work for you.  Contact us today for a FREE finance review.