Call: (07) 5527 4744

Banks charge loyal customers higher interest rates

April 17, 2018 in Insider Tips, Latest News, Rate Cuts by admin  |  Comments Off on Banks charge loyal customers higher interest rates

Question:

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 ?

Answer:

  1. 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.
  2. 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.
  3. 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.
  4. 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 ???

 

 

 

Posted in Insider Tips, Latest News, Rate Cuts.