Why are banks charging higher interest rates on Home Loans & Investment Property Loans to their loyal clients whilst offering lower interest rates to new customers ?
- The banks have discovered that loyal clients don’t tend to “Shop Around” when seeking a new Home Loan or Investment Property Loan & rather will simply contact their bank or visit their local branch manager. As a result the banks don’t need to provide the lowest interest rate to win this customer’s business.
- The banks are aware that many of their loyal customers don’t look too closely at their current interest rate which appears on their Home Loan / Investment Property Loan statement.
- The banks are also aware that many loyal customers will simply assume their bank is continuing to provide them with a competitive interest rate similar to that which they were offered when they first established their Home Loan / Investment Property Loan.
- If the situation arises that a loyal client approaches their bank & requests a lower interest rate the bank believes a small discount will often be sufficient to satisfy this client.
Over the last 2 weeks alone our Mortgage Specialists have assisted 7 separate families who were not aware that the interest rates they were being charged on their Home Loans were 0.50% p.a. – 0.80% p.a. higher than the interest rates their banks were currently offering to new customers.
In dollar figures these higher interest rates cost each family an additional $1,200.00 to $5,600.00 per year.
Fortunately our Mortgage Specialists don’t work for the banks & the end results were great for all 7 of these families who, after working together with their Mortgage Specialist, are now thrilled to be keeping an additional $1,200.00 p.a. – $5,600.00 each year in their own pockets.
Please remember … Our Mortgage Specialists work for YOU … not the bank
Question: How much is your bank charging for your loyalty ???