Home loans customers urged not to focus too much on the rate

Tuesday 20 September 2011

Article by Mozo

As competition between the big four banks continues, home loans customers may be missing out if they get drawn into considering only the headline rate of the various offerings.

Rates 'not everything with home loans'

This is the opinion of Resi Mortgage Corporation chief executive officer Lisa Montgomery, who told Property Observer that the battle between providers is "commoditising the service and sending a bad message to borrowers".

She urged those considering taking out a mortgage to look at more than the headline rate, saying that they should also think about the guidance and support they will be offered.

"All the rhetoric including from the government is about rate," she stated.

"I shudder for the borrower. The rate is important but it is not the only loan criteria," Ms Montgomery added.

Earlier this month, the Commonwealth Bank announced that it would match the advertised interest rates of any of its three major competitors – the ANZ, National Australia Bank and Westpac.

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