Loyal Mortgage Customers Are Wasting Money Sticking With Their Banks
The start of the year is an excellent time to take stock of your finances, think ahead and kick off your financial goals. Especially after reading this article, you will want to make this the year you finally switch to a better deal and start saving.
Loyalty is a good thing but new research shows that customers who stick with their childhood bank or banks their parents were with, are missing out on savings worth thousands of dollars.
New data from digital mortgage broking platform Uno has revealed one in five mortgage customers have their loan with the same bank they did as a child or they simply bank with the same financial institution as their parents.
Uno’s report states that the average interest rate on owner-occupied properties is 4.5 percent among mortgage holders who have a home loan with their childhood bank or parents’ bank, compared to 4.3 percent for Aussies who opted for a different lender.
Based on that difference of 20 base points, Uno figures found on a $300,000 30-year owner occupier loan, customers who switch could save $12,600 over the life of the loan or about $420 per year.
Investors who chose to switch are also getting better deals, paying an average interest rate of 4.6 percent. Whereas, investment loan customers who have a home loan with their childhood bank or parents’ bank pay an average of 4.8 percent.
Taking on a mortgage is easily one of the most significant financial commitments you will make in your lifetime. And, it has become more important than ever to give your home loan a health check. Review your finances and the many options that are available to ensure you’re getting the best deal.
There’s fierce competition in the home loan area, with non-bank lenders like Mortgage House offering one of the lowest variable interest rates on the market. Getting comfortable with the bank or lender you’ve been with and failing to switch to a better deal means you are losing out.
It’s time to reassess your financial situation and cash flow. We will be able to look at all your options and help you unlock the savings.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.