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ISCOVER
Staff Reporter
Home owners could not be bothered switching lenders, even if it meant they could save over one thousand dollars, Loan Market Group has said.
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A recent national survey by the brokerage found 58 per cent of respondents said they would need to save at least $1500 or more a year to be motivated to refinance with another lender.
Loan Market Chief Operating Officer Dean Rushton said the survey highlighted the growing need for brokers to communicate more effectively about the potential savings from moving mortgages.
“The differences between lenders and the interest rates and conditions they offer has never been wider,” Mr Rushton said.
“But our survey shows that people can’t be bothered switching banks even if they were able to save $1000 to $1500 a year.
“The fact is people can achieve significant annual savings by shopping around and getting a better deal on a mortgage with a much more competitive package.”
The online poll of 380 people found 42 per cent of those surveyed needed to see potential savings of more than $2,000 a year before considering switching loans.
Mr Rushton said a mortgage broker was well placed to review an existing home loan and determine whether a borrower can get a better deal from a rival lender.
“Mortgage holders might have to accept some exit fees from their original lender but it can be worth it if they can negotiate a significant reduction on their interest rate,” he said.
