Home loan customers 'still can't go down the road'

Wednesday 11 March 2009

Article by Mozo

A year after treasurer Wayne Swan insisted that home loan customers should be able to "go down the road" if they felt their lender was giving them a poor deal on interest rates, many Aussies are still struggling to break with their banks.

The Sydney Morning Herald reports that consumer groups are receiving record numbers of calls from disgruntled customers who are looking to compare home loans and get on a cheaper deal, but feel trapped because of exorbitant exit fees.

And while fixed-rate home loan customers may be feeling particularly ripped off after consecutive rate cuts, Fujitsu Consulting’s managing consulting director Martin North has warned that variable rate deals may come with a sting in the tail in the form of "deferred establishment fees".

"There are a number of situations where in fact the loan with the lowest rate is actually going to cost you more over the life of the loan because all these other conditional fees are stuck on. It’s unconscionable," he lamented.

The Daily Telegraph has warned that when looking to compare home loans, it is vital to consider all aspects of the deal to make sure it is suitable.

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