Research in 2015 showed loyalty to the big four was costing Aussies a collective $6 billion in cash savings each year. That’s $17 million a day.
Let’s translate that to your hip pocket, courtesy of the number crunchers at eChoice. Imagine you have a $500,000 loan over 30 years. With a big four lender your interest rate might sit around 5.03 per cent, compared to one of the best rates on the market at 3.72 per cent. By switching to the lower rate you’ll save $140,055 in interest payments over the life of your loan.
Imagine what you could do with an extra $140,000 in retirement!
The Reserve Bank of Australia estimates that Aussies on average are paying at least half a per cent more than they should.
But some unsuspecting customers are paying a whopping 7.3 per cent on variable home loan rate deals, reports the Herald Sun, close to 4 per cent higher than the cheapest on market.
So what can you do? You can Google yourself a better interest rate to get an idea of what’s out there. Then see your broker and ask them to show you the money!