Aussies expect huge savings when switching home loans

A significant proportion of Australian homeowners would not consider switching lenders even if they could save $1,000 on their home loan, new research shows.

An online survey by mortgage broker Loan Market found that 42 per cent of the 380 respondents would need to see savings of more than $2,000 a year before they would consider switching.

However, Loan Market chief operating officer Dean Rushton argued that people who choose to compare home loans can ultimately achieve huge savings.

"The differences between lenders and the interest rates and conditions they offer has never been wider," he said.

"If you're borrowing more than $250,000, then the savings can be even greater."

According to the survey, many people believe switching lenders would be more trouble than it is worth because of the fees and paperwork involved.

Mr Rushton therefore suggested that lenders need to be clearer about the potential savings and take steps to "demystify the process" of moving mortgages.

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