Tasmanians are fiercely loyal when it comes to switching mortgages
• 91% of Tasmanian mortgage holders say that would not consider switching
• Nearly half of Australians experienced mortgage rate rises since August 2016, despite no movement from RBA
Yet to be released to media: New research from comparison site Mozo has found that Tasmanians exercise the highest level of loyalty to their banks when it comes to home loans, with a whopping 91% of mortgage holders saying they would not consider switching banks.
Despite steadfast loyalty, 55% of Tasmanian mortgage holders believe their loan is not competitive, however, this was not enough for them to consider making the switch.
“Loyalty is an admirable quality, but when it comes to your mortgage, it can pay to see what else is on offer. The difference between a competitive and average offering on an owner-occupier home loan can save you tens of thousands of dollars over the course of your repayment,” says Mozo Director Kirsty Lamont.
“Whether you’ve had your home loan for one year, or twenty, it pays to check home loan offerings to ensure you’re getting the best deal for your needs. We are seeing high levels of discontent with Australian mortgage holders, but despite this, many are unwilling to make the switch to a different lender.”
Nearly half of Tasmanian mortgage holders had experienced an interest rate rise since August 2016, despite no movement from the RBA, which reflected national rate rise trends.
Only 27% of Tasmanians have a home loan rate above 4.00% compared to 44% nationally meaning many Tasmanian mortgage holders were securing competitive rates.
The new benchmark for an owner occupier paying principal and interest is under 3.70% with more than half of the lenders in the Mozo database now offer a rate under 3.70%.
Mozo recently compared 525 home loans from 88 financial providers for the Mozo’s Expert’s Choice Awards to find the most competitive offerings on the market for both owner occupier and investor home loans. Newcastle Permanent took out home lender of the year while loans.com.au won awards for both low cost, offset and investor home loan.
Comparing loans, the Experts Choice home loan judges found that the potential savings between and average and competitive loan was up to $68,400 based on a typical loan of $350,000 over 30 years.
When it comes to customer satisfaction, the big four banks ranked poorly with 70% of mortgage holders feeling dissatisfied about their current mortgage rate. Smaller banks fared slightly better with nearly 60% of respondents believing their home loan is competitive.
Mortgage holders in the 25-34-year-old age bracket were most like to switch with one in four considering a change in provider while only 8% of mortgage holders over 65 years consider making the switch.
Mozo – www.mozo.com.au
Gemma Rasmussen, Kirsty Timsans