Westpac customers switch home loans

Westpac customers are searching for other home loan options following its December interest rate rises.

AFG, Australia’s largest mortgage broker, told the Age that a large proportion of its business in December came from Westpac customers switching to other lenders.

Westpac increased its home loan rate by 45 basis points, nearly double that set by the Reserve Bank at the beginning of last month.

Mark Hewitt, AFG’s sales manager, told the newspaper: ’’Normally people think it’s not worth their while to move for 20 points because rates could change again, but in this case people are making a protest."

Disputing AFG’s findings, a Westpac spokesman told the Age that the bank’s lending growth remained strong because it was offering a good discount to ’’premium customers’’ as well as other benefits such as no credit card and account keeping fees.

Increasing competition among lenders may encourage bank customers to compare home loans in search of the best deals. This week Chris Acret, managing director at Smartline Personal Mortgage Advisers, told News Limited that the changing marketplace and personal circumstances should encourage Aussies to seek out better home loan offers.

This article is brought to you by Mozo – Helping you compare home loans