Did you know you could on average save $850 on your home loan just by calling up your bank and asking for a better interest rate deal?
Last week the Australian Competition and Consumer Commission released a report which found that the bigger banks are offering better deals to new customers, leaving existing customers worse off.
They found that “only 11 per cent of borrowers with variable rate mortgages had the price of their current residential mortgage reduced by one of the five banks under review in the year to 30 June 2018.”
Essentially, your loyalty to your bank will not get you a discount, unless – you take action and ask for a better deal. We know that sounds daunting, but trust us – it’s not difficult and can be very effective.
The first step is to always do your homework on what the best rates are, and these days comparison sites like RateCity make this very simple, so have a look at the offers and low rates currently available to give you a quick idea.
Once you’re ready to go into battle – remember the tipping point for your lender will come when they see you have done your research and are willing to switch loans. So give it a go – you’ve got nothing to lose and big savings to gain!
The Banking Royal Commission has put the established banks and lenders under the microscope and they haven’t always fared well. In fact, the number of complaints against the bigger banks has surged in recent months. And competition will increase further next year with the introduction of Open Banking reforms as well as newly launched digital banks.
So now is the best time to try and get a better deal on your mortgage – the bigger banks will work harder than ever to keep you as a customer.