Home loans: Banks' ploys to win your business

Paying off a home loan is a reality for many Australians, but that doesn’t take away from the fact that it’s a significant undertaking built upon important decision making – the first of which is choosing a bank or lender.

The average Australian capital dwelling price was $530,000 as of July 31, with Sydney the highest residential property at $650,000, followed by Melbourne ($540,000) and Perth ($519,000), according to the RP Data-Rismark July Hedonic Home Value Index Results.

With these big sums at stake, it’s no wonder banks are coming up with special offers in order to lure home loan customers in.

There’s no free lunch — or is there?

ANZ is currently offering $100 free cash to individuals who open an Access Advantage account by August 31 this year. Those hoping to take advantage of the offer must also use the internet banking or goMoney mobile app and deposit $2,000 by September 30.

For customers thinking about making the switch, the offer of free money is certainly tempting.

Meanwhile, any customer who applies for a HSBC Day to Day Account by September 30 this year, as well as making a purchase with their linked VISA debit card within a month of opening this account, will get $50.

Costs associated with home ownership get slashed

Once couples and families use a home loan calculator to establish their borrowing capacity, they can arrange loan pre-approval, attend open inspections, make an offer on their most desired properties and ideally secure their ideal home. 

However, buying a property doesn’t stop there. For one thing, homeowners will need to secure the appropriate insurance policy to protect themselves should the worst happen. 

One bank is appealing to homeowners by offering discounts on insurance. Westpac is currently offering a discount up to 25 percent on its Home and Contents Insurance packages, with three levels of cover available.

Appealing to Generation Y

Generation Y is known for being tech savvy, and one bank is tapping into this. 

Commonwealth Bank offers a Property Guide mobile app, which provides property insights on residential dwellings across the nation. It includes information from the RP Data Automated Value Guide, outlines property hotspots and has special tips and calculators for those thinking about buying real estate. 

Individuals also love their credit cards. NAB bank is offering 40,000 bonus Qantas points to those who sign up to a NAB Qantas Rewards Premium Card by October 19 2014, which could inspire those with a desire to travel.

With the plethora of financial incentives and more creative offerings such as the Commonwealth Bank app, Australians will need to evaluate all offerings carefully. There’s no reason to secure an upfront discount if the long-term benefits aren’t worth it.

For instance, when taking out a home loan it’s essential to observe the comparison rate between different lenders’ offerings to get an accurate idea of the true cost of a loan. In this competitive industry most banks and lenders are offering something special so shop around for a great deal – it could save you thousands. 

Compare home loans in Australia