Being Loyal Can Be Costly – Time To Refinance
- Nov 02, 2015
- By Dim Mastoros
- In News
- Comments Off on Being Loyal Can Be Costly – Time To Refinance
With each of the four big banks having recently raised their interest rates for variable home loans by as much as .20 percent, a new study finds that customers who choose to remain loyal are costing themselves over $6 billion dollars in savings each year, just by sticking with their current mortgages instead of refinancing to a much lower rate.
According to the banks, the recent hike in interest rates can be traced back to APRA’s decision to change the way the banks are required to do business. The Australian Bankers Association then went on to assure us that the price attached to these changes would be felt by everyone involved, including shareholders and upper management, not just their customers. But with record breaking profit margins and over a billion dollars a year to be generated from the interest rate hikes alone, business is looking good for banks, prompting some of us to question just how much of the burden the banks are actually willing to bear.
There is no doubt that making banks more financially stable is a good thing for Australia, however, it’s now becoming increasingly difficult to tell if the changes to regulations are just being used as an excuse by the banks to increase their profit margins despite stating that the rate hike only went ahead because they had been left with little other choice.
Many customers stick with their banks because they believe refinancing to be too much effort; shopping around for potential lenders and comparing rates takes time, but this is what we are here for. Refinancing is nowhere near as difficult as you may think. We have already saved our clients a great deal of money by simply reviewing their current finance. Contact us so we can do the same for you…