Mortgage customers 'want more from their bank'

Monday 08 October 2012

Article by Mozo

A significant number of Australian mortgage customers believe they are not currently receiving the best deal from their bank.

According to a new study published by Ernst & Young, 65 per cent of the population want to be rewarded for their loyalty by receiving lower fees and better interest rates.

Interest rates continue to be a hot topic of conversation, as the Reserve Bank of Australia sanctioned another 25-point reduction just last week.

None of the major banks have passed the cut on to their customers in its entirety, though.

This could be a bad move, as the Ernst & Young survey discovered that interest rates have become even more important to house hunters.

Times are hard for a lot of households and company representative John Rolland insisted that Aussies are increasingly looking to make savings on their home loans.

"A mortgage is the biggest debt most people will take on in their entire lives and given increasing financial pressures, it makes sense that saving money is people's first consideration," he remarked.

With so many different packages available – and with the government's new "tick and flick" rules making it easier for people to switch – Aussies have never had so much power.

However, one in three customers find this choice overwhelming, stating that they are bombarded with information, so it is vital that Aussies look for mortgages via a simple and user-friendly comparison website.

Mr Rolland added that more than three-quarters of the respondents had no idea which bank they wanted to switch to.

This means the competition is wide open for banks and those that offer the most attractive products will obviously boost their appeal.

"The winners will be the ones that make things simpler, offer innovative, tailored banking solutions that better meet customer needs, take a more proactive approach to their relationships, and reward loyalty," he added.

Mr Rolland also believes that banks need to stay up to date with technological advancements if they are to remain popular among the Australian public.

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Mortgage customers 'want more from their bank'

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