While lender offers and campaigns are nothing new to consumers, what is surprising is the number of lenders participating with huge financial incentives on offer during this Spring selling season.
Campaigns can include the likes of discounted interest rates, package deals which include credit cards, savings accounts, offset accounts, promotional introductory interest rates, rewards for switching, gift vouchers and flyby points.
Refinance cashback incentives have been getting all the headlines of late, now offering from $1000 up to $4000 per loan but like all deals that seem too good to be true, the devil is in the detail.
Never has the home loan lending space been so competitive on winning the consumers business. While these offers can be attractive and beneficial for some consumers who are on the lookout for a home loan or genuinely looking to improve their position by refinancing, it may not be worth signing up for a product solely for a special deal. The fundamental aspects of the loan, such as interest rate, fees and product and portability features are still the most important. A $1,000 bonus when you take out your loan may not ultimately prove to be good value over the life of the loan if you are paying an interest rate that’s higher than you could find elsewhere.
The cash back campaigns for refinancing, generally for $250K + borrowing amount, all have conditions and criteria that need to be met . Delving deeper into the requirements required to obtain these cashback incentives the consumers options narrow and may provide limited choice.
So where these shiny offers and campaigns may service the consumers’ needs in some circumstances, other times they do not. Pivotal Mortgage Brokers still need to consider their customers situation in its entirety, do our due diligence and provide all the detail for the customer to make an informed decision.
Reach out to your Pivotal Broker today about how we can help both you and your customers navigate the right deal !
Making Your Next Move Your Best Move
Matthew Andrews
General Manager
Pivotal Financial