Borrowers urged to compare home loans

Australian borrowers could save $2,500 a year by comparing home loans and switching lenders.

That is the view of consumer group CHOICE, which is urging customers to ditch the country's big four banks and move to smaller lenders, the Australian Associated Press (AAP) reported.

CHOICE also claimed that consumers can enjoy savings of up to $440 and $330 a year respectively by shopping around for better credit cards and savings account deals.

The comments come as the organisation teamed up with comparison service Mozo on its Better Banking campaign, a partnership which saw the launch of a new Compare, Ditch and Switch service.

Richard Lloyd, director of the campaign, told the AAP that almost 80 per cent of Australian customers have not considered switching banks in the last two years.

"Of course that's what the major banks rely on, they rely on lots of Australian consumers staying where they are and that's when you get hit by high fees, poor interest rates and unfair terms," he commented.

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