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Some home loans come with gifts attached

Some home loans come with gifts attached

Mortgage lenders are fighting hard for business, with Virgin Money gifting Velocity points to eligible borrowers and other lenders running cashback offers.

Virgin Money borrowers who choose a Reward Me home loan can lock in a three-year fixed rate at 2.99 per cent (comparison rate 3.42 per cent).

They can also get bonus Velocity points: 

  • 1,000 points for every full $10,000 drawn at settlement
  • 1,000 points every month throughout the loan
  • 30,000 points on every three-year loan anniversary (while the loan balance is over $50,000)

Borrowers who take out a $400,000 mortgage can accumulate 244,000 Velocity points after six years, according to Virgin Money calculations.

Meanwhile, Move Bank, Suncorp Bank and Commonwealth Bank are some of the other lenders offering home loan deals – in this case, cashback offers for refinancers.

Move Bank is offering $1,000 cashback, Suncorp $1,500 and CBA $2,000. As with the Virgin Money offer, conditions apply.

LenderProductAdvertised rateComparison rateSpecial
Virgin MoneyReward Me (3-year fixed)2.99%3.42%Earn 1,000 Velocity points for every $10k drawn at settlement + 1,000 points every month + 30,000 points every three years
Move BankStraightforward Home Loan3.09%3.12%$1,000 cashback for eligible refinance loans approved by Oct 31 and settled by Dec 31
Suncorp BankBack to Basics Better Together Special 3.29%3.30%$1,500 cashback for eligible refinance loans applied for by Sep 30 and settled by Dec 28
Commonwealth BankExtra Home Loan3.35%3.36%$2,000 cashback for eligible refinance loans applied for by Oct 7 and funded by Dec 9

Data accurate: 22nd August 2019. Fees and charges may apply, so make sure to read the Product Disclosure Statement (PDS) before you sign on the dotted line.

Borrowers should do their research and compare home loans, whether they’re taking out a new mortgage or refinancing.

Rewards points and cash rebates are nice, but sometimes an ‘ordinary’ mortgage will be more suitable for a particular borrower than a loan that comes with a special offer.

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