Nationalcorp Home Loans is claiming its new borrower loyalty scheme will also benefit brokers by "protecting trail incomes."
The mortgage manager is offering borrowers a 0.5% quarterly rebate for the first five years, which helps "pay off their home loan years sooner," said managing director Barry Parker.
For brokers, Parker says the scheme will benefit trail income by keeping customers happy for the long-term.
Nationalcorp's focus on loyalty comes in the wake of increased refinancing, which is seeing more borrowers switch lenders to secure better deals.
"Chasing cheap rates will only benefit a customer in the short term. If they keep refinancing, one day they will be faced with retirement and have 20 or more years left to run on their home loan,” said Parker.
The scheme, which is available to all Nationalcorp customers, will also offer a 0.25% pa bonus paid in a lump sum after five years.
“With the current climate of people refinancing every four years or so, I just want to reward customers for their loyalty,” he said.
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