Many Australians end up paying tens of thousands of dollars more than they need to over the life of their loan. Some don’t realise it but many end up angry at the great Australian rip- off?
What is the lazy tax?
Banks and other mortgage lenders are not great at supporting their existing customers. As interest rates drop, lenders can offer great rates to new customers, but they don’t often share these competitive rates with existing customers.
They do this because they hope you aren’t paying attention or, if you aren’t paying attention, they are just hoping that you are too lazy to ring up or look at other home loan options.
Existing Borrowers Are Getting Ripped Off. They Should Be Angry.
If you asked an existing borrower whether or not they should be treated the same way as new borrowers, the answer would be no surprise. Of course they are going to say yes. And they are likely to be angry when they find out that new borrowers are often going to be paying thousands of dollars a year less for the same size loan.
There is something that you can do about it.
As much as the Government and Regulatory Authorities would love to see this practice of differing rates for different customers ended, it hasn’t necessarily happened yet. You still find advertised rates for new customers are different to what existing customers get. And even with a change of interest rate, if you are offered a discount it may not be as large as the rate offered to new clients.
But you do have options. You do not have to pay excessive rates. You do not have to pay a lazy tax. You should ask your current lender for the best available rate and, if they are not prepared to support you, you should look at different lenders. There are so many competitive products and special offers available in the market. You could save thousands of dollars.
As specialist residential mortgage brokers we have access to a range of lenders and a range of products. If you are ready to stop paying the lazy tax and, instead, keep your money in your pocket, then let us take a look at your situation and find you the best product for your situation. Get in touch today for a no obligation chat.
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