Consumers paying billions to the big four
(27 October 2010 – Australia) Switching to the big fours’ cheaper rivals could save consumers A$9.6 billion a year, according to finance comparison website InfoChoice.
InfoChoice found that, on average, the variable interest rate for home loans sourced from the big four was almost 1 percent higher than the banks’ four cheapest rivals.
For households with a A$300,000 mortgage, a A$25,000 car loan and A$2263 on the credit card this could mean a saving of A$80 a week if they shopped for the best deal.
When compounded this indicates that if all of Australia's big bank customers switched to the lowest-priced products in the market, they would save A$8.4 billion on home loans, A$486 million on credit cards and A$459 million on other financial lending, including car loans.
InfoChoice banking analyst Davis Lalich said that consumers blindly sticking with the big four was costly.
'Consumers all shop around for the best grocery deal and the cheapest petrol prices but the same isn't happening with financial services", Mr Lalich added.
InfoChoice found that the cheapest offers came from Better Option, State Custodians Mortgage Company, Ratebusters and Nationwide Lending, with an average variable rate of 6.41 percent, no application fee and a A$210 yearly service fee.
For households with a A$300,000 mortgage, a A$25,000 car loan and A$2263 on the credit card this could mean a saving of A$80 a week if they shopped for the best deal.
When compounded this indicates that if all of Australia's big bank customers switched to the lowest-priced products in the market, they would save A$8.4 billion on home loans, A$486 million on credit cards and A$459 million on other financial lending, including car loans.
InfoChoice banking analyst Davis Lalich said that consumers blindly sticking with the big four was costly.
'Consumers all shop around for the best grocery deal and the cheapest petrol prices but the same isn't happening with financial services", Mr Lalich added.
InfoChoice found that the cheapest offers came from Better Option, State Custodians Mortgage Company, Ratebusters and Nationwide Lending, with an average variable rate of 6.41 percent, no application fee and a A$210 yearly service fee.
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