With the recent RBA decision to cut rates, some lenders are reluctant to pass on the full reduction. This is despite banks like the CBA posting a record profit of $9.45 bn and their Managing Director collecting a 50% increase in remuneration. Ian Narev's take home pay increased from $8.0m to $12.3m as reported in CBA's 2016 annual report.
As banks continue to chase profits, they are putting shareholders before their customers. In an article written by Clancy Yeates in yesterday's Sydney Morning Herald, he suggests that customers have cottoned on to the fact that by staying with the same lender, you risk losing out on a better rate. Banks will generally discount heavily for new customers but are not so keen to be as competitive on existing customers.
It is no wonder over 50% of new loans go through a broker. Mortgage brokers have capacity to access to all lender discounts and with lenders who just offer a best rate. Lenders are happy to give discounts of 1.2 to 1.4% with some lenders offering as high as 1.7% below their standard variable rate.
All the lenders vary and so there are discounts available which could save you money. Call me today on 02 9525 0112 for an obligation free assessment of your situation.