A mortgage with a signup bonus can make for an attractive extra benefit. But you need to make sure the home loan itself is right for you.
In a crowded mortgage market, many lenders offer signup bonuses to get your business, from interest rate discounts to package benefits and even cashback offers. This page has a list of loans with some kind of special offer and useful information on what these offers mean and advice on how to compare them so you make a good decision.
Compare home loans with signup bonuses
What signup bonuses do lenders offer?
- Fee reduction or waived fees. Many lenders will waive or reduce fees for a limited time. Given that application fees can cost $600 or more, this is a decent saving. These offers are often time sensitive.
- Cashback or special gift. This is also a common offer from lenders that involves a special gift or cashback offer when you sign up for the loan. Although this does not help you save money on the loan directly, it can offset the costs of signing up for a loan or refinancing. This type of signup bonus should be considered just that, a bonus, because it has little to do with the actual loan.
- Discounted interest rates. Discounted rates can save you a decent amount of money in the early stages of your loan.
- Exclusive rate offer. This is also a lucrative offer from lenders when you sign up to a loan. It involves a special low rate which can either be for the life of the loan or for a certain amount of time. For example, you could choose a fixed rate home loan which rewards you with a lower rate for the more years you choose to fix for.
- Package your financial products. This type of signup bonus can benefit both you and the lender by allowing you to package things like credit cards, savings accounts and offset accounts with your home loan account. You can save by paying a combined annual fee for all products you've chosen to package, as well as enjoy the convenience of having all of your finances in the one location. You'll usually get an interest rate discount on your loan too.
- Free or complimentary rewards or products. This is a type of signup bonus that may extend over the life of the loan. These type of bonuses encourage you to sign up and then continue to reward you for doing things like making repayments. Again, this type of bonus has little to do with the actual loan and will not help you actually save money, so should just be looked at as an added incentive.
- Frequent flyer points. Some lenders have partnerships with frequent flyer rewards programs. The points you can gain from these loans can equal enough to cover an international flight, but it often depends on how much you borrow.
How to compare home loans with signup bonuses
When comparing mortgages it's important to look at long-term savings over upfront bonuses. A lower interest rate will save you more money than a cashback offer in most circumstances. Signup bonuses are attractive side benefits of a loan, but don't get too distracted by them. If the loan itself isn't a good product for you then the bonus just isn't worth it.
Always look at the following when shopping for a home loan:
- Interest rate and savings. Does this loan have a competitive interest rate? Will it save you money even without the signup bonus?
- Period of offer. You should also keep in mind how long the signup offer will last for. For instance, if the loan offers a special rate for the first year, is the revert rate still an affordable option for you?
- Other features of the loan. The signup offer should not be the only reason you are choosing a certain home loan. You need to take into account all the features offered by the loan and whether they suit your needs and situation.