It seems as if anytime we sign-in online we learn more about how COVID-19 is impacting our daily lives. Most economic outlooks are projecting a recession in the 1-2 year range and experts are warning the pandemic will leave a lasting mark on the Canadian economy. With all this going on, customers may be hesitant to take on higher interest loans due to economic uncertainty. But for those who are still looking to make purchases a short term low interest program may attract your customers to purchase now, this is where the buy-down promo comes in. Buy-downs can help your customers transact the projects they need or want to do now, locking in at a low cost to borrow, taking them past the projected economic downturn.

What is a buy-down?

A buy-down is when you reduce (or buy down) the interest rate that you present to the customer. Buy-downs are most effective when your customers are taking on a larger than average project as a lower interest rate has a noticeable impact on the monthly payment. This will also enable you to up-sell higher end units as you will have the ability to sell premium products/service at the same rate as a competitor’s mid-tier product/service.  

Why use a buy-down?

You may be wondering if a buy-down promo is right for you and your business? Consider the following key factors to see why you should use a buy-down.

Short term period

  • Offer a shorter term program to get your customers past the economic downtown, into 2023, when the market is expected to stabilize.

Low merchant cost

  • Programs between 4-6% cost represent the largest share of usage in 2020.
  • Rate buy-downs are the second most popular form of promotion.

Competitive advantage

  • Offering a 180 month amortization on buy-downs gives you a competitive advantage. This promo price is a Financeit exclusive – unmatched in the industry.

Rate sensitivity

  • Customers may be more rate sensitive and feel much more comfortable transacting a lower rate during these uncertain times.

How to position buy-down promos


  • Change your mindset about offering a promo. Consumers are familiar with and respond well to financing promotional offers. Do not have a preconceived mindset, think of how common financing is in the auto industry, customers are conditioned to finance their vehicles.


  • Understand your customers’ situation, and what is important to them. In times of financial uncertainty, promotions give your customers the financial flexibility to get their home improvement project completed when they need it.


  • The most effective way to use a promotion is by incorporating it into your advertising strategy (website, flyers, email, in-store POS) to drive additional lead volume using Financeit.


  • Offer promos up front instead of waiting until the end of the sales process – that way your customer will take the offer into consideration when making their purchase decision.

In short, you can position and sell buy-down promos by talking about it as soon as possible to your customers. Leading with a financing option such as a buy-down is a simple way to ease your customer into the idea of using financing. By using rate buy-downs in your marketing strategy you can save money by avoiding the traditional save the tax promotions. While also being able to address customers interest rate objections by offering a lower rate option.

Financeit buy-down programs allow for the lowest monthly possible payment with amortization up to 180 months which comes in handy during slower periods to help entice customers. With market conditions having led to more customers being protective of their cash flow, and with GDP and unemployment numbers expected to stabilize by 2023, a buy-down promo can help both you and your customers weather the storm until normalcy is achieved.

Boost your sales by offering your customers financing.

Terms and conditions: Promotional Programs only available in Canada. Terms and conditions apply to all Promotional Programs. Speak with your Account Manager for more information. All loans on approved credit from FinanceIt Canada Inc. Rates and terms subject to change without notice.