Take advantage of signup bonuses being offered by home loan lenders and save on what matters.
Unless you’ve been extremely frugal and have saved up enough money to buy a property outright, at some point in your life you are probably going to need a mortgage. Luckily, the home loan market is a competitive one and lenders are offering an increasing amount of deals and bonuses when you sign up with them. These are referred to signup bonuses and they can save you money on interest, reduce your fees, allow you to package financial services or reward you with cash or prizes.
There’s a range of these bonuses on offer, so be sure to compare and find the deal that appeals most to you. Keep in mind that this loan will be with you for a long time, so these signup bonuses should only sweeten the deal or act as a tie-breaking feature when you are comparing your home loan options.
Compare home loans with signup bonuses
Lenders can offer a huge range of signup bonuses that you can take advantage of, including:
- Fee reduction or waived fees
This signup bonus is a popular offer from lenders and involves them offering a reduction in fees for a limited time, such as no annual fee or no account-keeping fees for the first year. They may even waive some of the fees for the life of the loan. Lenders often require you to sign up online or before a certain date in order to take advantage of this kind of offer.
Current offer: Pay no application fee when you take up the HSBC Home Value Loan Resident Owner Occupier Only.
- 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.
Current offer:Abode Home Loans is offering a $100 Coles Myer gift card to new customers who apply for a new home loan over $150,000.
- Limited time discounted rates
This type of bonus involves the lender discounting the interest rates on the loan for a certain amount of time. These discounted rates can save you a decent amount of money in the early stages of your loan and as such are quite a generous offer from lenders.
Current offer: UBank is offering an upfront discount of 0.25% p.a. on their variable rate UHomeLoan and if you keep the loan for three years you'll enjoy a loyalty discount of 0.10% p.a..
- 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.
Current offer: Borrowers can get up to 0.89% p.a. discount off the ING DIRECT Orange Advantage Home Loan if they keep their loan-to-value ratio (LVR) below 90% discounts only available to new owner occupier customers.
- 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.
Current offer: NAB Choice Package with their Tailored Home Loan (variable or fixed rate) or the NAB FlexiPlus Mortgage.
- 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.
Current offer: The Macquarie Bank Basic Flyer Home Loan lets you earn Qantas Rewards points as a signup bonus, plus gives you the ability to earn points for making repayments.
How to compare home loans with signup bonuses
When comparing home loans with signup bonuses, there are a few things you should keep in mind.
- Savings. You should consider whether the loan actually helps you save money, or whether you will just receive an added bonus for signing up to the loan.
- Period of offer. You should also keep in mind how long the 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.