Westpac loses customers over rate rise
(8 January 2010 – Australia) Australia’s largest mortgage broker, Australian Finance Group, has said that most of its December business was made up of angry Westpac customers switching to other lenders.
The protesting customers, refinancing their mortgages, saw the Commonwealth bank take the spot of largest source for AFG’s mortgages off Westpac.
The finance company would not reveal the number of customers that made the move but did say that the anti-Westpac movement made December their largest month for refinancing.
AFG sales manager, Mark Hewitt, said that there are people who are fed up with Westpac and are making a stance; normally people think it’s not worth their while to move for 20 basis points because rates could change again but in this case people are making a protest.
It's hard to switch banks, but when customers feel strongly about something they tend to endure a bit of pain to get their point across, Mr Hewitt highlighted.
A spokesman for Westpac disputed the mortgage broker’s findings saying that Westpac’s new lending growth remained strong.
The spokesman also added that the bank had not noticed an abnormal amount of refinancing in December.
Westpac made the controversial decision to raise its interest rates 20 basis points above the Reserve Bank of Australia’s official move of 0.25 percent and has resulted in the largest ever gap between banks rates.
The finance company would not reveal the number of customers that made the move but did say that the anti-Westpac movement made December their largest month for refinancing.
AFG sales manager, Mark Hewitt, said that there are people who are fed up with Westpac and are making a stance; normally people think it’s not worth their while to move for 20 basis points because rates could change again but in this case people are making a protest.
It's hard to switch banks, but when customers feel strongly about something they tend to endure a bit of pain to get their point across, Mr Hewitt highlighted.
A spokesman for Westpac disputed the mortgage broker’s findings saying that Westpac’s new lending growth remained strong.
The spokesman also added that the bank had not noticed an abnormal amount of refinancing in December.
Westpac made the controversial decision to raise its interest rates 20 basis points above the Reserve Bank of Australia’s official move of 0.25 percent and has resulted in the largest ever gap between banks rates.
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