Blog

March 29, 2018

What’s your loyalty costing you?

Tim Cece | Director, Search Mortgages

In Australia it’s a common misconception that your loyalty counts for something with your bank…So what’s this assumption costing you? Potentially thousands of dollars each year!

Many of our clients say “I’ve been with my bank for 20 years; I opened my first savings account with them when I was 7 years of age – surely they would do the right thing by me?” Well in our experience the answer is – NO!

If you haven’t reviewed your home loan in the last 3 – 5 years, We can almost guarantee, you’re paying too much…

Being complacent when your fixed interest rate has expired is a great scenario for the banks – why you might ask?

This is because when your fixed period has expired the bank will revert your interest rate to the standard variable rate and this is when it gets costly! When this occurs you could be paying anywhere up to 2% more than the best market rate available and this can cost you significantly each month until you review your loan.

This is where we come into it. It’s our responsibility as your personal broker to manage your lending facilities, from our initial engagement, through the life of the loan and any future finance you may require. It’s our responsibility to know when your fixed term is up and negotiate on your behalf the best possible interest rate for your circumstances.

Recently, we negotiated a better interest rate for one of our investor clients which resulted in a saving $1,200 per month on the loan without having to move banks or change facilities.

This article may raise many questions and we hope it does!

So the next question you need to ask yourself is… can I afford not to have Search Mortgages helping me?