top of page

4 Banks Work in Sync to Rip off Customers

Home loan customers have potentially missed out on saving thousands of dollars a year on their mortgage repayments to Australia’s biggest banks, while those same institutions have reaped in billions thanks to new regulations.


These are the key findings of a report by the competition watchdog following its latest inquiry into Australia’s big four banks and Macquarie Bank.


The Australian Competition and Consumer Commission criticised the banks for making it hard for home loan customers to work out the best mortgage deal due to their “opaque” pricing strategies, which the watchdog says stifles competition.


It found that as at June 30 this year, an existing borrower with an average-sized mortgage could initially save at least $850 a year and potentially much more – in interest payments if they negotiated with the big banks to pay the same rate they offered to new borrowers. This would equate to significantly more if that same borrower refinance to smaller or boutique lender as we have seen savings as high as much as $12,000 per year.


The ACCC found that only 11 % of borrowers with variable rate mortgages had their rates reduced by one of the big five banks in the year to June 30 which means 89% of borrowers of Big Banks are being ripped off!


We encourage more people look at getting the lowest possible interest rates for their residential mortgage and, as they do so, be ready to switch to another lender!


The ACCC inquiry was prompted by the federal government’s call to investigate the responses by the Commonwealth Bank, ANZ, National Australia Bank, Westpac and Macquarie to a $6 billion banking levy introduced in the May 2017 budget.


The best thing to do for any mortgage holder with a Big Bank is pick up the phone and ring 1300 861 143 and talk to us so that we can assist in finding you a better deal suited to your needs and situation.



Disclaimer

This information is current as at 12/12/18. This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.

12 views0 comments

Recent Posts

See All
bottom of page