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The overwhelming majority of brokers believe that lenders who offer holidays to attract home loan customers are wasting their time, according to a recent poll.
The Adviser asked readers whether offering holidays to customers is an effective way for lenders to incentivise home loans, and 83 per cent of respondents were not convinced that this method of marketing works.
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Only 17 per cent of respondents said offering holidays is an effective way for lenders to attract borrowers.
Simplify Your Mortgage director Nathan Daniell believes offering holidays work, however he says the marketing technique should be outlawed.
“We are talking, for many clients the largest debt in their life – their biggest financial commitment – that is now being sold with ‘a free set of steak knives’,” Mr Daniell said.
“Is this seriously the appropriate loan product for the client or are they being persuaded with a free holiday? Is their judgement being clouded by gifts, by incentives, dare I say it … by a bribe?”
Approved Home Loans broker Erik Verheyden echoed Mr Daniell’s view, saying the practice of offering holidays as an incentive is “outrageous”.
“Offering a reward for getting people deeper into debt is not right,” he said.
[Related: Pepper’s new home loan offer ending soon]
