BankSA makes home loan rate pledge

BankSA has pledged to better the home loan rates offered by Australia's "big four" banks over the next month – making the market even more competitive.

Managing director of the organisation Jane Kittel said the offer will apply to fixed and variable rate mortgage products and the scheme will run from November 26th until the end of December 21st.

As an added incentive, customers can also claim a $1,000 rebate to help cover refinancing and house purchase costs.

"We're absolutely committed to providing South Australians with great home loan offers and helping them achieve their dream of owning a home," she remarked.

"I encourage people to come and talk to one of our home loan specialists about their individual needs."

Australia's mortgage market continues to be dominated by Westpac, Commonwealth Bank, ANZ and National Australia Bank, but there are signs that their power is being diluted.

The big four have faced criticism in the past for failing to pass interest rate cuts sanctioned by the Reserve Bank of Australia on to their home loan customers and a lot of people have been switching to smaller, less established companies that offer more favourable deals.

It seems the likes of BankSA are going the right way about boosting their market share and it is encouraging to see so much competition in the industry.

This can only benefit Aussie house hunters, as lenders will have no choice but to offer attention-grabbing packages that make them stand out from the crowd.

A recent study conducted by Roy Morgan Research suggested that mutuals are in vogue at the moment.

Their overall customer satisfaction rating was 91.4 per cent in October 2012, way ahead of the big four, who could only muster a score of 78 per cent.

It will be interesting to see if BankSA's attractive new offer encourages many Aussies to take out a mortgage and it will be even more intriguing to see if Australia's main banks do anything to counter such deals.

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