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1 in 5 won’t refinance and will continue to pay a ‘loyalty tax’

By February 4, 2020News Articles

One out of every five Aussies would not consider refinancing to another lender, even if it meant securing a better deal.

That’s the result of a recent survey by Finder, which showed a false sense of loyalty, set-and-forget mentality, and lack of motivation were some of the key reasons that 17% of Australians were staying shackled to their home loan.

The survey showed that nearly half of Australians don’t even know their current interest rate, that 35% feel like they’re being ripped off by their lender and that refinancing could save the average borrower $58,000. You can read the full report here.

If you’ve held your current mortgage for even just a year or two, data from the ACCC (Australian Competition & Consumer Commission) found here, shows that existing customers typically pay 0.24% more in interest than new customers. Check your current lenders website and often it’s offering super low rates that are for “new borrowers only”.

Thankfully it’s not your fault, your current interest rate and mortgage was probably great for its time but paying an extra $58,000 in loyalty taxes to your current provider is a lot. If you have any questions contact the PWS Finance team for more information on how we can help.

Sources
https://www.finder.com.au/loyalty-lender-could-cost-thousands
https://www.accc.gov.au/publications/residential-mortgage-price-inquiry-final-report

 

neilforrester

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