What is a loyalty mortgage?

A loyalty mortgage is a type of home loan offered by lenders to existing customers, often at favorable terms or rates to encourage them to stay with the institution for their mortgage needs. These mortgages typically reward borrowers for their ongoing relationship with the lender, such as previous accounts or products. Benefits may include lower interest rates, reduced fees, or streamlined approval processes. Overall, loyalty mortgages aim to enhance customer retention by providing added incentives for current clients.