Everyone wants more money, but with the big four banks raking in more profits than ever, how can you make the most of your hard-earned cash?
In 2015, the ‘big four’ banks (ANZ, Commonwealth Bank, NAB and Westpac) brought in a record $30 billion in combined profits. As if that isn’t enough, they’re raising interest rates by 15-20 basis points to wring another billion annually out of property owners.
In the meantime, smaller lenders are offering strong competition, with lower interest rates and more flexibility.
So here are three reasons to refinance to a smaller lender:
1. Save money
RateCity, a comparison website, shows just how much you could have saved in the past 10 years. If you had an average ($300,000) 30-year mortgage from one of the common ‘package’ or ‘discounted’ rates and you dumped the big four for a lower rate, the difference could be better than $14,200. A $500,000 mortgage could have saved almost $23,700.
2. Great service
Have you worried that switching to a smaller lender will compromise the service you receive? You’ll be glad to know that Roy Morgan, a research company, has revealed that customer satisfaction is substantially higher among smaller lenders than with the big four. For instance, ME Bank and ING Direct both scored above 90% in a survey of thousands of customers, while the big four all fell flat, barely clearing 80%.
3. Smart business
Refinancing is a normal part of managing your finances and property. On average, the upfront cost of refinancing works out at less than $450, and simply taking the time to research the market and make a switch could save you thousands. In turn, those savings could ultimately cut down the time you take to pay off your mortgage and bring you closer to being free.
Have you had enough of lenders who are only interested in their own income? Are you ready to review the market and refinance? Contact us to discuss refinancing your mortgage and save time and money.