Big four mortgage satisfaction on the decline as home loan competition heats up
Satisfaction levels among Commonwealth Bank, Westpac, ANZ and NAB home loan customers has fallen to 76.1%, according to the Roy Morgan’s banking consumer satisfaction survey for July.
Mozo People’s Choice Winner, Bendigo Bank reported the highest level of consumer satisfaction among mortgage customers at 95.7% with the Bank of Queensland coming in second at 90.8%.
“Dating back to 2011, smaller banks have consistently topped our consumer satisfaction surveys for home loan customers,” said Industry Communications Director for Roy Morgan Research, Norman Morris.
RELATED: Meet the online lenders saving Aussies millions
He also said that because smaller banks have a greater service-culture and offer competitive mortgage rates, their consumer satisfaction levels climb higher than that of a big four bank.
The survey results come in the wake of the ABC’s investigation into mortgage stress and adds to the general sentiment of disappointment surrounding Aussie home ownership.
With the average Big Four basic variable interest rate for owner occupiers paying principal and interest on their home loans sitting at 4.19%, Mozo Product Data Manager, Peter Marshall suggests customers use the dissatisfaction levels to their advantage and switch lenders.
According to the Mozo database, 29 different providers have reduced variable interest rates for owner occupiers since June 1. The lowest rate available on the market is currently Reduce’s Rate Buster Variable at 3.44% but other lenders, such as Newcastle Permanent and Mortgage House have introduced new low rate products for owner occupiers with a variable rate at 3.64%.
RELATED: Borrowers should brace themselves for home loan rate hikes: ME
“It is great to see this increased competition. Lending regulations have spurred banks to offer better rates and now owner occupiers can find a find a more competitive variable interest rate or negotiate one with their current providers,” said Marshall.
With APRA’s tightened lending regulations surrounding interest-only loans, the banks are now competing more and more for the lower risk lending opportunities that owner occupiers provide.
To see how much you can save by switching, check out Mozo’s Home Loan Switch & Save Calculator and head to our Home Loan Refinancing hub for the best tips and tricks when it comes to refinancing your home loan.