You may have noticed that some banks offer you a cashback deal as a financial incentive when you take out a home loan with them. Whilst this appears to be a good offer at the time, many of these financial institutions still charge you a hefty annual package fee, meaning that the money you may save in the beginning will come back in fees later down the track.
For example, a $2k cashback may seem appealing but with many banks charging annual package fees up to $395, a 30-year mortgage will cost $11,850 in annual package fees alone, along with any other applicable initial application fees. So that cashback which first seemed so appealing starts diminishing in value very quickly. While some banks offer cashback deals with their loans that don’t come with paying a package fee, you will usually still pay some other fees or lose access to other benefits, such as an offset account.
When you refinance or purchase your first property with Police Credit Union, we do not charge you any monthly or annual fees over the course of your loan, ultimately saving you more money (even thousands) in the long term.
Have a look at our Special Offer Home Loan.
What’s more, we pride ourselves in offering competitively low home loan rates that have the potential to save you money over the course of your loan compared to a higher interest rate with another bank that offers you a cashback.
Review our article on Comparison rates, so you can critically review rates offered by other banks. Comparison rates reflect the actual annual interest rate, together with the loan amount, the term of the loan and the required repayments. It also includes many of the fees and charges associated with taking out the loan.
With all those fees you don’t have to pay, plus competitively low home loan rates and great customer service, you could not only save yourself thousands of dollars but also time by choosing a home loan with Police Credit Union.