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.
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