Cashback Incentives (Do You Know What You’re Selling)

Written by on May 9, 2022

Interest rates and cashback offers – do you understand them or do you sell them? 

With so many variables to how a client sees an incentive that pushes them to take action, it must be your responsibility as a mortgage broker or loan writer to intimately understand the lender’s incentives as well as their short term and long term repercussions so you can honestly and proactively advise your clients. 

Otherwise, you will be winning clients on rate, losing them on rate, Winning them on cashback, losing them on cashback and who suffers in that scenario; you do. 

When you get to a point in your career where you are not selling to clients, but they are coming to buy off you from the strength of your proposition – then you are winning. But that comes with time, dedication and creating exceptional client experiences. 

Know that when you start winning, the competition gets less and your offer will keep getting stronger as you pay attention to the outcomes over the long term, not short term.

Understand Your Client First 

There is an old adage – “understand before you seek to be understood” and this is as true today as it was in the past. Taking the time at the beginning of your relationship with your client to key into their goals, motivations and needs will serve you in the times they reach out and ask you about a cashback incentive or refinancing option. 

You will be able to guide them on the best decision for them, based on the knowledge you have of their goals. And if you’ve put in the hard yards and established a strong relationship where you are their trusted advisor, they will take your advice, no questions asked. 

By understanding how the cashback incentives work you will be able to explain to your client the realities of their timelines, limitations and gains. Then together you can decide whether it’s the best course of action. 

As a broker or loan writer, if you’re not considering the client’s long term goals, then you risk a situation where you haven’t put the client’s best interests first. 

The cashback offer should be seen as the cherry on top of the deal not the main point of the deal. 


New Clients And Cashback Incentives 


Ask yourself if this client (and you) are looking for a transaction or looking for a relationship? 

A cashback offer should be the last part of the conversation, not the first part. So be wary when a client raises this first. Listen to their goals and their needs and then tune into your advisor mode and share all the relevant information you have with them.

The line to tread is buying a client vs advising a client. Don’t forget that you need the client, the client doesn’t need you. However, if this client does not fit your ideal client and you will be losing this client as soon as the next cashback incentive offer for another bank is announced, then have an upfront conversation with them. 

Creating a client experience where you understand them personally and what they’re trying to achieve will give you a strong place to put forward a proposition to them. By understanding their goals and motivations you will be able to protect and advise them when incentives and offers are made available to them. You’ll also know if they’re not the client for you. 

Cash Back Incentives Can Dilute Your Client Experience 


When a bank announces a marketing campaign with cashback incentives, mortgage brokers around the country breathe a sigh of frustration. 

There are not many banks that have offered a seamless experience for their clients with cashback incentives. They often have not met timeline expectations and have given a substandard customer experience; and who deals with the client face-to-face when they feel as though they’ve been led down the garden path? You as a mortgage broker or loan writer.

So when you and your client decide that a cashback offer is something that fits into their goals and is not necessarily the crux of the deal, but the sweetener, then you must set the expectations with your client around it and be clear on what it really means for them.

Be honest that refinancing for a cashback offer is not always the way to go, based on your intimate knowledge of how long a bank will take to deliver that incentive back to your client. 

Remember: if you take the client on this journey of a cashback offer, you will be held accountable for the experience they have because you are their first contact! 

Be Open To Other Options 


There are some lenders that will give their clients the choice of interest rate reductions or cashback incentives. Be open to researching, advising and communicating these options to your clients. If it works for the client in the long term and they continue to see you as their trusted advisor, then it works for you. 

How We Can Help You, Now. 


At Success & Broker, we have a few different ways to assist in your broker journey, depending on where in your career you are right now and what you’re looking to gain in the next twelve months and beyond. 


The Broker Journal™


The exercise program for finance professionals – The Broker Journal™ is designed to kickstart your broking journey, revitalise your broking career and set you on the path to lasting broker success. Through an online learning platform, you gain access to weekly coaching videos, activities and routines to help you plan, grow and expand your growth.


Your very own weekly coaching, results tracker and motivator in one place. The Broker Journal™ does not have any one-on-one support as a part of the program however it is industry recognised with a maximum of 30 CPD points from the MFAA and FBAA.

Pathway to Broker Growth


This coaching option is personal one-on-one support with Ruan Burger. There are a couple of options ranging from monthly, bi-monthly and three-monthly check ins, depending on your goals and desire for growth. You also gain access to The Broker Journal™ which can work with your coaching side by side. 

To enter into the Pathway to Broker Growth, it’s a discovery call process and we help you to decide the right option for you based on your present goals. 


The Proventus Program


As a Business Owner, you may seek to have a greater vision to fulfil. You may just need a little (a lotta) help getting there. Our Proventus Program sees you exclusively partner with Ruan Burger for eight one-on-one sessions per month for 12 months.


This is serious business planning and deep strategic development for business owners with real goals to achieve and big plans to set in motion. 

Just remember; strategy is what is in front of you, vision is what is ahead of you.

A coach can assist with those strategic plays for better tactical implementation.

The Proventus Program is built on 4 pillars: research, planning, implementation and review. Your vision, your strategy, our support.

To enter into the Proventus Program, it’s a discovery call process so we can understand where your business is now, and where you want it to be. Click here to book the call. 

If you’re a mortgage broker or loan writer looking for a coach, or own a mortgage broking business and looking for a business coach then please contact our team today. We have solutions for you, whether you are metro or regional broker, just starting out or a seasoned pro – we’ve done the hard yards and we can help get you to where you want to be

Build a brand that is large enough to rely on, but small enough to care – this much you owe to your clients, staff and referrers. 

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