fbpx
1300 416 700
Home Loan Types The Team Calculators Learning Our Difference Get in Touch
News

Loyal Customers Hit by Interest Rate Rises

Australia loyal customers

A report from the productivity commission has accused Australia’s ‘big four’ banks of gouging their loyal customers by charging them higher interest rates than new customers.

Recently the amount of interest people have been paying on their mortgages has increased by far more than the rate of inflation.

This occurred even though the Reserve Bank’s benchmark cash rate hasn’t changed in 16 months.

The reason is that last year the industry regulator, the Australian Prudential Regulation Authority (APRA), instructed banks to limit the number of interest-only mortgages they issued. The banks did this by increasing interest rates on interest-only loans.

However, they didn’t just raise rates on new loans, but on existing loans as well.

When it comes to banking, Australians seem reluctant to shop around for the best deal.

Australian house

Half of us still bank with our first bank, and one outcome is that we end up accepting interest rates on home loans that are up to 0.4% higher than the rates offered to new customers. Over the life of a loan, that can add up to some big dollars.

If your bank rewards your loyalty by upping your interest rate, maybe it’s time to refinance at a lower rate. Shore Financial’s mortgage brokers can compare hundreds of loans from dozens of lenders to help you find a better deal. Why not give us a call and see what you can save on your interest payments?

Learning

Related Articles

News
Refinancing

Refinancing Your Mortgage for Home Renovations

21 Jun 2021
News

Fixed Mortgage Rates Likely to Rise Due to RBA Cut

27 May 2021
News

Why Owner-Occupied Homes May Face Capital Gains Tax

14 Apr 2021
News

RBA To Review Ultra-Low Rates With Australian Property Market Hitting ...

16 Mar 2021
News

House Prices Are Likely to Increase by 30% Over the Next 3 ...

16 Feb 2021
Mortgage Basics
News

Home Loan Subsidies: What is out there Currently and are ...

20 Jan 2021
Market Trends
News

Property Trends for 2021

20 Jan 2021
Market Trends
News

Stamp Duty vs Proposed Property Tax: Which Is Better For ...

16 Dec 2020
News
Purchasing

Budget 2020: What it Could mean for Sydney’s Property Market

16 Oct 2020
News
Refinancing

Responsible Lending Laws Scrapped: What this Means for You

16 Oct 2020
Mortgage Basics
News

How JobKeeper & Super Claims Could Affect Your Home Loan Application

17 Aug 2020
News

SHORE FINANCIAL 101: The HomeBuilder Scheme

17 Jul 2020
Market Trends
News

FY20 Wrap-Up and FY21 Predictions on the Property Market

17 Jul 2020
News

Sydney Property Market: How does the Coronavirus compare to the ...

15 May 2020
Market Trends
News

Auction & Lending Changes During COVID-19: the Good, the Bad & the ...

14 May 2020