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CHOICE's One Big Switch campaign has managed to refinance just 4 per cent of its registered borrowers five months after the campaign was launched.
Speaking to the ABC last week, One Big Switch co-founder Lachlan Harris admitted the campaign had only managed to refinance 1,600 of the 40,000 registered borrowers.
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But while 1,600 borrowers have finally changed their lender, 38,600 remain in limbo while the refinancing process drags on.
A quick calculation suggests that at the current rate of success the last borrower to be refinanced would have to wait around 10 years before they are able to switch to the promised better rate.
Back in August CHOICE's One Big Switch campaign raised the ire of the industry with many brokers questioning the benefits that would be delivered to the borrower – particularly from a group that had previously poured scorn on the services brokers provide to their clients.
It was only a few years ago that CHOICE was urging borrowers to avoid brokers altogether.
In October 2008 CHOICE concluded that borrowers could save between $18,000 and $46,000 over the life of their loans by not visiting a mortgage broker.
Speaking to The Adviser, Connective principal Mark Haron said the conversion ratio was "very disappointing".
"If brokers had that conversion ratio, the banks would have stopped doing business with the third party distribution channel a long time ago," he said.
"While many consumers thought the campaign was good in theory, in reality, it has proven to be incredibly unsuccessful."
Mortgage Choice chief executive Michael Russell highlighted the lack of choice that borrowers were given via One Big Switch as a major stumbling block for the initiative.
"Considering there are no major banks on One Big Switch's lending panel, I am quite surprised they have refinanced so many Australians," Mr Russell said.
"If a borrower went to a broker they would not only have access to more lenders, but they would be ensured of a faster turnaround time as well."
