Rate cuts are the most common, because they tend to make people sit up and take notice. So you might be offered, say, a discount of 0.50 percentage points on your home loan or 0.25 percentage points on your car loan. Often these are temporary discounts – perhaps for one or two years. Sometimes, they are discounts that last for the entire length of the loan.
Cashback offers are also common, again because they’re easily understood. In this scenario, a lender might offer you a $1,000 rebate if you signed up for a home loan or a $100 rebate if you signed up for a personal loan. Sometimes, these might be open to all customers, regardless of whether they’re taking out a new loan or refinancing. Sometimes, though, they might be open to only one or the other.
Fee reductions are another way lenders try to win business. This might involve, say, scrapping your personal loan application fee or waiving your credit card annual fee for a year.
Rewards points might also be in the mix if you sign up for a particular lender’s credit card or home loan.
Gifts are another potential inducement. For example, you might get an iPad if you sign up for a home loan or a gift voucher if you sign up for a car loan.
Balance transfer deals are a common credit card inducement. In this scenario, a lender might agree not to charge you interest on your credit card debt for, say, 18 months, if you shift all of that debt from a rival credit card onto that lender’s credit card.
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