Loyalty to Big 4 costs home loan customers $6 billion in savings each year
Mozo has calculated that borrowers who remain with a Big 4 home loan despite recent interest rate hikes are missing out on a collective $6.08 billion of cash savings each year or $17 million a day.
Mozo Director Kirsty Lamont said that big bank customers should be compelled to look around because they are missing out on a potential pile of cash savings by sticking with what they know instead of taking the opportunity to shop around for a better deal.
“Knowing you could be up for a share of $6 billion should be enough of an incentive to switch to the lowest going rate on the market,” she said.
According to our home loan database the lowest rate on the market available now is 3.84% from online lender iMortgage, where monthly repayments would be $305 less than the new average Big 4 standard variable rate.
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Lamont said Westpac customers would receive the largest windfall, saving as much as $3,816 a year by switching to the lowest rate, followed by CBA and NAB customers.
While ANZ’s new variable rate is the lowest of the Big 4 at 5.56%, homeowners could still save more than $3,500 annually by switching to the lowest home loan rate.
Are you looking for a better deal on your home loan? Use our home loan comparison tool to search for the most competitive rates in the market right now or head on over to our refinance hub for helpful articles, tools and tips for making the home loan switch.
Home loan comparisons on Mozo - rates updated daily
Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
- HSBC
2.09% p.a.
fixed 2 years2.98% p.a.
DetailsHSBCFixed Rate Home Loan
Owner Occupier, Principal & Interest, LVR <80%
2.09% p.a.
fixed 2 years2.98% p.a.
Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^
- ING
2.59% p.a. variable
2.62% p.a.
DetailsINGMortgage Simplifier
LVR<80%, Owner Occupier, Principal & Interest
2.59% p.a. variable
2.62% p.a.
Enjoy no ongoing monthly or annual account-keeping fees. Unlimited additional repayments. Redraw facility available. If you choose to round up your Orange Everyday, every card purchase will help to directly reduce your outstanding home loan balance.
- loans.com.au
1.99% p.a.variable for 12 months and then 2.57% p.a. variable
2.55% p.a.
Detailsloans.com.auSmart Booster 1 Year Discount Variable Home Loan
1.99% p.a.variable for 12 months and then 2.57% p.a. variable
2.55% p.a.
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends).
- UBank
2.14% p.a.
fixed 3 years2.41% p.a.
DetailsUBankUHomeLoan
Owner Occupier, Principal & Interest
2.14% p.a.
fixed 3 years2.41% p.a.
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
Hot Deal$2,500 cashback when you refinance your home loan to BOQ (T&Cs apply)
Bank of Queensland2.29% p.a.
fixed 2 years3.52% p.a.
DetailsBank of QueenslandDiscount Fixed Rate
Owner Occupier, Principal & Interest, <80% LVR
2.29% p.a.
fixed 2 years3.52% p.a.
Have the certainty of fixed repayments with a competitive rate from BOQ. Flexible repayment options available and make up to $5,000 in additional repayments annually. $2,500 cashback when you refinance your home loan to BOQ (min. $250k lending, max 70% LVR, T&Cs apply).
^See information about the Mozo Experts Choice Home Loans Awards
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