Advertorial By Brad Makivoy | May 10, 2019


Even with a surge in smaller lenders offering home loans at less than 4.00%, thousands of Aussies still aren’t being rewarded by their banks with home loan rate cuts.

So what’s keeping the big banks from passing on these rate cuts to you?

No prizes for guessing. It’s purely financial.

The fact is, your bank expects you to stay with them, even if there are better deals out there.

They know that you’re time poor and have better things to do than running around comparing home loan rates and reading fine print. In the end, for most people, it’s just easier to stay put.

So from their perspective, why would they fight to keep you happy?

For example, why offer someone 4.00%, if they’ll stick with you at 4.5%, right?

All they’d be doing is costing themselves hundreds of millions of dollars with little to no return.

Now, this isn’t to say that banks don’t pass on rate cuts at all. They often will. The difference is that they generally only pass on a slight change to existing customers. Just enough to make it appear as though they are looking after you.

But, for a bank to actually grow its loan book, it needs to do more than just hold onto existing customers. It needs to bring in new ones. And the best way to compete with the other banks for new customers is to offer the lowest rates.

So what happens? The low rates tend to go to new customers and existing customers lose out.

Some banks may even go as far as to cover the switching costs involved in changing lender to bring on new clients.

The most expensive mistake borrowers can make is sticking with their lender for too long. Refinancing is really quite simple and the payoff can be massive.

If you’ve been on the same home loan product for over 12 months and you want to see if you can get a better deal, now’s the time!

Compare current home loans on the market and see if you could save. Click on your state to get started!

Compare home loans