For most of us, it’s been a while since we reviewed our home loan.
Our financial position, including our borrowing capacity, has likely changed. A good deal a year or two ago may no longer be the case now.
This is where we all end up paying the bank loyalty tax (BLT) at some point. Ouch!
The truth is, all lenders rely on customers becoming complacent and this fattens their interest margins over time.
Very few people are stuck with the same lender for life.
To reduce this BLT impact, 76 per cent of home loan customers are using mortgage brokers to source better funding.
I always suggest to clients that if they have equity in their home – and that’s ideally over 20 per cent – there’s a way forward.
Given Sunny Coast property has seen more than 20 per cent growth in the past two years, and interest rates have dropped, many lenders are very keen for our home loan business.
Remember, Australian lenders love new customers and penalise loyalty. Savings are there by engaging an experienced mortgage broker.
It’s time to see how bad your BLT situation is.
Matt Punter, Director, Punters Finance and TSC Mortgage Brokers, puntersfinance.com.au and thesavingscentre.com.au
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