While the decrease in variable interest rates over the last few years have been good news for all homeowners, a recent study indicates that the real winners are those who are willing to make the switch. The RBA have recently released a report outlining the cost of remaining loyal to your bank.
The findings show that customers who have taken loans out within the last 3 months are getting the most attractive rates. The study indicates that the discounts are over 30 basis points cheaper than those of their loyal counterparts. Given that there is an estimated $1.6 trillion in mortgages outstanding, the cost of bank loyalty comes in at a staggering $4.8 billion per year.
On a smaller scale, for an Australian with a mortgage of $500,000 the saving is approximately $1,500 per annum. If that doesn’t feel like that big a deal, think about this: how would you feel if your bank were charging you $125 per month for you to have a bank account?
If you would like to ensure that you are getting the best possible rate, contact one of the Stonehouse Credit Advisers to find out how much you could potentially save on your mortgage.