Switching makes dollars and sense: Ratecity
Australians have forked out an estimated $47.6 billion in ‘lazy tax’ over the past 10 years by keeping their mortgage with the Big Four banks rather than switching to one of the lowest rates in the market.
That’s an estimated $14,215 for a borrower with the typical $300,000 mortgage, or $23,692 for borrowers with a $500,000 loan.
Sally Tindall, money editor at RateCity.com.au, said borrowers shouldn’t set and forget about their home loans.
“Australians, traditionally, haven’t been big switchers but when they do, they are saving thousands of dollars,” she said.
“It’s not difficult to find an interest rate starting with a three, and it’s not uncommon to find rates starting with five, so the variation between rates is huge in dollar terms.
“People need to start thinking about the rate they are paying and factoring that into their bottom line when they take out a loan.”
