According to new research by the Queensland University of Technology (QUT) and commissioned by Heritage Bank, while half of us seriously consider switching essential service providers, less than a quarter actually act on those intentions.
The research looked at a variety of bank and service providers including home loans, credit cards, home and contents insurance, energy and grocery suppliers, and mobile phone and internet providers.
Across our lending panel today, the difference between the most expensive loan and the least expensive is a massive 1.85% - an interest saving of $9,250 over 12 months on a $500,000 loan balance.
Nearly 83% of Australians said they would switch their home loan if they could save $3,000 per year. If that was the case, our big four banks Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank Ltd and Westpac Banking Corp would have virtually no customers.
The problem is that almost a third of Australians think switching is too much effort, and 1 in 6 don’t switch because they think it will cost too much, despite the savings on offer
Dr Juliana Silva-Goncalves from QUT commenting on the report said, “It’s interesting to see apathy as the key barrier to switching across such a wide range of industries. This belief it’s too hard to switch and too costly, is stopping households from saving thousands of dollars.”
Those who have shopped around to find better deals are now collectively $2.5 billion better off according to the research. A third of those switching home insurance providers saved more than $300 while switching grocery stores saved nearly 15% of people more than $1,000 per year.
Pick up the phone and make an appointment to see if you can save on your home loan.