In a first for Australia, one bank will start rewarding borrowers with cash in return for home loan repayments.
The plan is a loyalty rewards program from ING Direct for customers who have the Orange Advantage Offset Home Loan.
Starting from May 1st, both existing and new customers with the Orange Advantage will get a 1 per cent cash return based on monthly repayments up to $3000.
Lisa Claes from ING Direct explained the new program to The Adviser.
“We are focused on becoming the primary bank for our customers,” she said.
“Over the past few years we have been expanding our product and service offering to meet the broader financial needs of Australians, whether they’re looking for a transaction account, home loan, savings account or superannuation.”
Our customers have responded well and supported us on our journey, so this is our way of saying thank you to those who have adopted ING Direct as their main bank.”
There is a small catch with the offer, with customers needing to have a savings transaction account with the bank that gets a minimum $1000 monthly salary deposited into it to qualify for the rewards benefit.
The home loan 1 per cent rebate then gets paid into the transaction account at the end of every month for the customer to spend as they please.