Be wary of special deals from big banks, home loan customers told

Thursday 03 March 2011

Article by Mozo

Aussie house hunters looking to compare home loans online could be among those interested in the views expressed in a recent article on the current "battle of the banks".

Be wary of discount offers, home loan customers told

Writing for the Sydney Morning Herald, Lesley Parker, stated that customers should "beware a fee ambush" from big bank lenders currently offering discounts.

Ms Parker explained that over a 20-year period, the impact of ongoing costs, including as monthly fees, could be "far greater" than a host of current offers like waiving a one-off $350 application fee.
She said: "The dynamite 0.8 percentage point markdown offered by a big bank could be very worthwhile – or it may only bring the rate into line with those already available elsewhere. You might do even better if you look around."

The comments come as competition for home loan custom heats up with National Australia Bank cutting the interest rate of its online offering to 6.99 per cent and the Commonwealth Bank offering a fee-free deal at 7.24 per cent.

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