Rate, Betterment launch mortgage incentive partnership

Chicago-based mortgage lender Rate has entered into a partnership to offer mortgage incentives to customers of wealth and savings platform Betterment, the companies announced Tuesday.

Under the arrangement, Betterment customers with at least $100,000 in combined investment and cash balances who apply for a mortgage through Rate may qualify for discounted interest rates and closing-cost credits.

“By working with Betterment, we are rewarding their qualified customers with discounted mortgage pricing via the most straightforward and transparent lending platform and experience in the industry,” Rate CEO Victor Ciardelli said in a statement.

Betterment said the program could extend to more than 1 million customers, subject to standard eligibility and underwriting requirements. The offering is available nationwide, as Rate holds licenses in 50 states.

The promotion runs through the end of 2026. It offers qualified borrowers $500 in closing-cost credits and an interest rate discount of up to 0.75%. The comparison is based on the national average mortgage rate published by Mortgage News Daily, assuming a $500,000 loan amount, a 780 FICO score and a 75% loan-to-value ratio.

Eligible products include select Federal Housing Administration (FHA) and conventional 30-year fixed-rate mortgages for detached single-family primary residences.

“Buying a home is a significant step on one’s financial journey and by partnering with Rate, we can offer an additional tangible benefit to eligible customers who are ready to enter that next chapter,” Betterment President Mike Reust said in a statement.