1. Home
  2. /
  3. Glossary
  4. /
  5. Bonus Credits

Bonus Credits

A premium (usually 1%-5% of the purchase price) that often accompanies an annuity contract. Bonus Credits are associated with buying a house and offer a potential buyer an incentive to move forward with the purchase. Bonus Credits are essentially extra or free money added to your account upon a real estate purchase. If a company offers you a two percent Bonus Credit on a ten thousand dollar down payment, you would receive two hundred dollars credited to your account – lowering the total repayment. Bonus Credits can be an incentive to put more money down in order to have more credited to your account, essentially the more you put down, the less you pay over the duration of the investment. Bonus Credits usually range from two to five percent depending on the particular investment. Bonus Credits can make a difference in the overall amount and length of loan payments thus saving you money in the long run. The more money you can invest and put down initially, the more you will save. Although this information is not always relayed to a potential buyer, it is something that every potential buyer or investor needs to be aware of. Bonus Credits can and will vary from investment-to-investment or investor-to-investor.

Skip to content