The majority of Australians have never changed or reviewed their lender or bank, preferring to use the one lender for all of their needs.
According to Mortgage Choice’s 2016 Money Survey, 49% of respondents in South Australia said they were ‘loyal’ to their financial institution and as such, had not seen the need to switch institutions or have a relationship with multiple lenders.
Speaking about the results, Mortgage Choice broker and franchise owner, Julie Browne said that while there is nothing wrong with being loyal to the one banking institution, it is important for Australians to make sure the lender they choose is still meeting all their needs and keeping up with rate changes.
“So many Australians have been with one lender for a number of years and never do a health check on their finances, or look around for what they could get elsewhere. Australians shouldn’t take a set and forget attitude towards their finances.”
There are a few easy ways that people can give their finances and financial institutions a ‘health check’ to ensure they are still meeting their needs:
Review your needs regularly
Even after you have done your research and decided upon a lender, it is important to continue to review your financial relationship on a regular basis. Only 12.9% of South Australians surveyed, reviewed their options on a regular basis.
“It is important to be proactive when it comes to your finances and research your options regularly. As a general rule of thumb, it is a good idea to review your financial situation at least once a year or every time you make a significant financial decision – whatever comes first,” says Julie.
Not reviewing your needs regularly could mean that you continue to be stuck in a financial relationship with a lender that is not getting you to your financial goals as fast as another could. Even if you would like to stay with your current bank, asking them for things you need and want, could see you switch to another product in their range which suits you better.
Refinance your home, personal or car loan
No one likes repaying a loan and it can be a big hit to the bank balance. What’s worse is that many Australians are paying a higher rate than what is available to them, simply because they haven’t reviewed their loan.
According to Julie Browne, Australians should be reviewing any of their current loans, including home, vehicle and personal at least once every 2 years to ensure that the products they have chosen is still meeting their needs.
“Looking at the Money Survey data, the number one reason why Australians switched lending institutions was because they could source a higher savings rate elsewhere of they found a better home loan deal with another – both which are great reasons to change lenders” says Julie
And, it’s not difficult for Australians to review their loans to see if they are still getting the best deal, especially with a broker doing all the legwork and comparison for you.
“Traditionally brokers do not charge for their home loan service, so you could be missing out on savings that could cost you nothing to receive.”
Know what you want from a lender
“All Australians have a unique set of financial needs and goals,” says Julie
“As such, it is important to partner with a lender that meets our unique needs. Of course, before we can choose the right lender, we need to know who we are and what we want from our financial lending institution.”
Those who are wanting to grow their savings and make their money work harder may need to look for an institution that offers a great high interest savings account product. Alternatively, mortgage holders may find there is more benefit in partnering with a lender that offers a sharp home loan package and interest rate.
“Regardless if you are looking for a lender with low home loan interest rates or one that allows you to take money out of any ATM in Australia and not be charged a fee, there will be a lender out there that meets your needs,” says Julie
To book a free home loan health check with a broker fill out the online form on this page or contact us on: 08 8342 5688 or mobile 0421 206 543