Home loan repayments are often the largest ongoing expense for Australian households.
Loyalty Penalties from the Big Banks will cost Australians around $2,100 this year - as existing customers continue to pay significantly higher rates for their loans than new customers.
Many Australians are aware it is common practice for lenders to give new customers better rates on their home loans.
However, a lack of clear and transparent pricing from the banks, as well as, time costs and inconvenience is making it too difficult for many to act.
Many are feeling frustrated with their current loan deal and their lender is taking advantage of them.
The ACCC Home Loan price inquiry highlighted that many borrowers could save money by seeking a lower rate from their existing lender or switching to a new lender.
It identified factors are standing in the way of borrowers including: 'a lack of clear and transparent pricing.'
We are not just numbers. We are real people.
As many Aussies are struggling with impacts of recent COVID & are crying out for a better deal - we will showcase their stories.
We hope it will help highlight the need for a fairer deal by giving them a voice, amplifying their stories & empowering to act with the facts and tools they need - starting with clear and transparent pricing.
Father of two, Scott lives on the Gold Coast with his family. The 44-year-old has been with the Commonwealth Bank for more than 10 years and says banks should give existing customers the same rate as new customers.
Deb lives in regional New South Wales with her family and has had a home loan for more than 10 years. The 38-year-old says she knows others are getting a better deal but feels trapped...
51-year-old police officer, Kym lives with his partner and children in Northern Tasmania. He has had a $480,000 loan with the National Australia Bank for 4-5 years and is paying 3.99%.
Kym says he feels ripped off, trapped and worse off, “Just another big bank wanting record profits. It isn’t a good message to send customers they already have.”
Annie lives in Longreach with her partner and has had a home loan for 2-3 years with Westpac. The 30-year-old is currently paying 3.99% on a loan of $260,000, Annie says, “I feel ripped off and believe I should be rewarded for my loyalty.”
55-year-old Michael, who lives in Lindfield with his family, has been with Resimac for 2+ years and is paying 2.14%. He says that since it’s been taken over he feels like a headache for the company and it does not have his best interests at heart. “They know nothing about customer service and loyalty except for making over the top profits.” Michael says despite feeling ripped off and taken advantage of - he’s trapped. “The costs of switching outweigh the savings,” says Michael.
Helen lives with her partner in Esperance and has had a loan with Macquarie Bank for 2-3 years. The 55-year-old says that lenders should give new and existing customers the same deal, and she feels ripped off with the rate as well as ‘hidden’ fees so is going to start looking for a better deal. "I didn’t choose my lender, my mortgage broker did,” says Helen. “I’ve been either too busy or unwell to really look into it but it’s on my agenda ASAP."
Sarah is in her 50s and has had her loan with the ANZ for more than 10 years. Currently paying 3.83%, Sarah says she doesn’t trust her lender, “I feel penalised for being loyal and feel worse off.”
John lives in Melbourne with his children and has had a loan with the National Australia Bank with nearly five years. The 50-year-old father is paying 3.18% on his loan and says it has never dropped.
"Banks don't care about your health. They only care about their shareholders. They don't care about customer service and will only react when you threaten to leave.”
Mother of two, Amanda lives in Helensvale and owns a small candle business Anchor and Co. The 40-year-old says she has been with the Commonwealth Bank for 35-years. “I absolutely feel ripped off,” says Amanda. “There's no reason not to match our rate with what they are giving new customers. They are simply keeping the difference. We are doing it tough through Covid, whilst they pretend to help but really aren't.”
“We have had to sell off so many assets. They should definitely give some kind of benefit to adults that have started with dollarmite accounts and never left in 35 years with multiple loans already paid off,” says Amanda.
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