JPMorgan Chase hasn’t been shy about throwing down major cash to land millennial customers.
Just consider the debut of the Chase Sapphire Reserve, the most ballyhooed credit card of 2016. The bank pridefully announced that the card resulted in a $US200 million loss, thanks in part to a huge 100,000 point sign-up bonus — worth $US1,500 — which the company slashed down to 50,000 points earlier this year.
Chase is yet again offering an eye-popping 100,000-point bonus, this time to a growing subset of its customer base: Millennial homebuyers.
Beginning May 8, Chase is rewarding existing cardholders of the Sapphire Preferred, Sapphire Reserve, and the no-fee Sapphire credit cards 100,000 rewards points when they close a mortgage loan with the bank. The offer is available until August 6.
“Half of Chase Sapphire customers are millennials, many of whom are looking to buy their first home now or in the near future,” said Pam Codispoti, president of Chase Branded Cards. “With tremendous enthusiasm around the new Sapphire Reserve card and ongoing popularity of Sapphire Preferred, this is another way to provide even more value to our shared customers.”
The Reserve card has a $US450 annual fee and the Preferred has a $US95 fee after the first year. Rewards points can be redeemed for travel, gift cards, or cash back.
The bank says the decision to offer rewards in conjunction with its mortgage loan came after it recognised a trend in millennial homeownership among its customers. In 2015, 20% of Chase mortgage customers were under age 35 and by 2016 that share jumped to 36%.
As Business Insider’s Madeline Stone previously reported, the median age of a first-time homebuyer right now is 33, with millennials making up 56% of America’s first-time homebuyers (the largest age demographic).
The customers JPMorgan is targeting tend to be wealthier, too. Gordon Smith, chief executive of consumer and community banking at JPMorgan, said in February that the typical applicant for the Reserve card had an average income of more than $US180,000 and an average deposit and investment wallet of over $US800,000.