By Daily Mail (U.S.) | Created at 2024-11-21 16:26:55 | Updated at 2024-11-21 20:39:06
4 hours ago
Americans can now earn rewards points when they buy a home, under a new program launched Thursday.
Bilt made a splash in the rewards space in 2021 with its program which allows Americans to earn points by paying their rent on time with no annual fees.
Now it has expanded its reach with a first-of-its-kind program which awards homebuyers with one point for every $2 of a home's purchase price.
For example, a $400,000 property purchase could earn up to 200,000 Bilt Points, which can be spent on travel, dining or fitness classes - much like a traditional credit card rewards program.
'Americans receive rewards for everyday purchases, but have never been properly rewarded for the largest purchase they will make in their lifetime,' said Ankur Jain, founder and CEO of Bilt Rewards.
'This is part of our broader mission to make the path to homeownership more accessible and rewarding for our members.'
It comes the housing market has become increasingly unaffordable for millions of Americans over the last several years.
Mortgage rates have soared, which has meant that many homeowners have stayed put in their properties, locked in by cheaper existing loans. This, in turn, has pushed up home prices, due to a historic shortage of houses for sale.
Property taxes and insurance costs have also been on the up across large swathes of the US, amid worsening climate disasters.
Americans can now earn rewards points when they buy a home, under a new program launched Thursday by Bilt
'Americans receive rewards for everyday purchases, but have never been properly rewarded for the largest purchase they will make in their lifetime,' said Ankur Jain, founder and CEO of Bilt Rewards
Anyone can be a Bilt member and it is free to sign up online, the company said.
But in order to earn points through buying a home, members have to work with an eXp Realty agent.
eXp Realty is the largest independent real estate company in the world with more than 85,000 agents across the world.
The real estate company will charge its usual broker fee and pay Bilt a cut.
As part of its expansion, Bilt has launched a 'buy a home' tool which allows renters to see what kind of home they could afford based on how much they are currently paying a month.
Unlike traditional calculators that require users to input complex mortgage calculations, the company said, the tool shows available homes based on an all-in monthly payment - which includes local taxes and insurance costs.
The tool also shows available homes across different cities.
'Across the country, there are housing shortages by city,' Jain told DailyMail.com.
'What we're trying to do is help people make a decision when they're ready to buy a home and settle down as to where their dollar goes furthest.'
He added that there are cities where a buyer might think homes are more affordable, but due to high taxes, they might find their buying power is actually less.
Budding homeowners can also specify whether they are a first time buyer, or if they are able to put down a higher down payment on a home.
'So you can buy the house, find the homes you can afford, and qualify for a better rate,' Jain said.
'You can basically travel the world for free for the next few years on the points you earn from buying a home.'
Bilt allows members to transfer points to its partners, which include airlines such as United, or hotel chains such as Hilton or Hyatt.
For Jain, it is about making the process of buying a home more accessible for Americans, and rewarding them for making it onto the property ladder.
'Whether you're paying rent or you're finally ready to buy a home, we want to make it possible and we want to make it rewarding,' he said.
'Your biggest purchase is now your most rewarding purchase.'
Jain predicts that interest rates will likely start dropping under the new presidential administration next year, which presents an opportunity for first time buyers to get on the market.
Next, the company wants to work on creating a model to help homeowners earn points on their mortgage.
As of latest Freddie Mac data from November 14, the average 30-year fixed-rate mortgage is 6.78 percent.
As part of its expansion, Bilt has also launched a 'buy a home' tool which allows renters to see what kind of home they could afford based on how much they are currently paying a month
'What we're trying to do is help people make a decision when they're ready to buy a home and settle down as to whether their dollar goes furthest,' says Bilt CEO and founder Ankur Jain
If Americans do not live in a Bilt partner property, they can earn points on rent with a co-branded Mastercard credit card
Since publicly launching in 2022, Bilt has seen a stratospheric rise - and is now valued at $3.25 billion, according to the New York Post.
34-year-old Jain, meanwhile, is estimated to be worth $1.2 billion.
The company has now signed up up property owners with 4 million rentals in thousands of cities across the country, as well as its airline, hotel, gym and restaurant partners.
'Today, 70 percent of the top 100 rental companies all use Bilt to collect all rental payments,' he told DailyMail.com.
By tracking rent payments every month, Bilt is also designed to help boost its members credit histories, in order to help them eventually qualify for a mortgage.
The average monthly rental payment across the US is just over $2,000, according to Zillow.
If Americans do not live in a Bilt partner property, they can earn points on rent with a co-branded Mastercard credit card.
The credit card has no annual fee, but it also has no sign-up bonus.
Users also have to commit to using the card five times every month - on top of the rent payment - to derive significant value from it, according to NerdWallet.
If renters do not live in a Bilt-affiliated property and do not have the credit card, they are still able to pay rent through the Bilt app, but they will only earn 250 points for doing so and will still owe the processing fee.
