According to financial comparison provider RateCity, weaker lending figures are driving banks to offer incentives, but these incentives can be little more than red herrings over the life of a 30-year loan.

“Don’t go choosing something as important as a home loan based on a short-term perk,” RateCity spokeswoman Sally Tindall said.

“Free overseas flights or a lump sum of cash might grab your interest, but most home loans have a 30-year term, by which time the holiday will be a distant memory.

“There are lots of specials on the table at the moment because the banks are eager for your business. Growth in home loans is slowing and that’s got the banks’ marketing departments working overdrive.”

The Commonwealth Bank is the most recent lender to launch an incentive, offering borrowers a $2,000 cashback deal on some of its loans. It follows Westpac, the Bank of Sydney, Homestar Finance, Virgin Money, UBank and Reduce Home Loans in using the tactic.

However, based on an owner-occupier principal and interest loan of $300,000, borrowers could end up paying between $690 and $85,051 more over a 30-year loan.

RateCity broke it down:

“If you’re looking for a home loan, first make sure it is a fit for your finances. Then look for a loan with a low rate and low fees. Any cash or points offered beyond that are a bonus,” Ms Tindall told borrowers.