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

    Market Trends
    News

    Are We Nearing the Peak of the Property Boom?

    17 Dec 2021
    Market Trends
    News

    Property Prices Have Grown at the Third-Fastest Rate Since 1880

    17 Dec 2021
    Market Trends
    News

    Surge in Spring Availabilities Fade

    30 Sep 2021
    News

    How the Sydney Lockdown Will Affect the Property Market and ...

    13 Aug 2021
    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
    Guides
    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