Is loyalty to your bank costing you?

16 Apr Is loyalty to your bank costing you?

It’s true, for most banks your loyalty isn’t always rewarded.

A recent article in the The Sydney Morning Herald (link at the bottom) highlighted that the gap between the cheapest and the most expensive mortgages from the big banks is 1.7%. And the headline showed that this could cost those who are paying the highest rate a whopping $370,000 more in interest over a 30 year term. This is of course based on a mortgage of $1,024,000 (80% of a an average Sydney property).

It’s not always wise to switch for every customer however, there are costs associated with switching, and some home loan deals do have honeymoon (or introductory) period rates that could leave you in a much worse position long term. You also need to take into account the current loan to value ratio and ensure that any savings are not offset by lenders mortgage insurance.

Using an accredited finance and mortgage broker will allow you to review your current position against dozens of lenders and hundreds of products to make sure that any changes reflect your short and long term financial goals.

It’s worth checking and most mortgage brokers will not charge a fee for this service. Get in touch on 1300 275 369 or email admin@foxmortgages.com.au for more information.

 

(Source: Sydney Morning Herald: https://www.smh.com.au/money/borrowing/revealed-the-370k-saving-you-can-get-by-shopping-for-a-home-loan-20180321-p4z5em.html)

 

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