No RBA movement since 2016 isn't stopping rate rises: Mozo

No RBA movement since 2016 isn't stopping rate rises: Mozo
No RBA movement since 2016 isn't stopping rate rises: Mozo

Nearly half of Australian mortgage holders have experience a rate rise since August 2016, despite no RBA movement, new research from Mozo.com.au has found.

The comparison rate site suggested lenders are hitting existing borrowers with mortgage rate increases to fund compelling offers for new customers.

Their national survey found 44 percent of mortgage holders have a home loan rate above 4 percent, despite the new benchmark for owner occupier rates being under 3.7 percent.

More than half of the lenders in the Mozo database now offer a rate under 3.70%. 

Mozo director Kirsty Lamont says many mortgage holders consider the banks offerings to be 'good enough.' 

By taking out the best mortgage for your needs, you can easily save tens of thousands of dollars over the course of a loan," Lamont said.

"What we're seeing is that many mortgage holders consider the banks offerings to be 'good enough' when really, they're offering their best deals for new customers while hiking rates for existing customers. 

Whether youve had your home loan for one year, or twenty, it pays to check home loan offerings to ensure youre getting the best deal for your needs. 

"Despite paltry offerings for many existing mortgage-holders, 42% of Australians believe their home loan rate is competitive and only 18% considered making the switch to a new lender.

Mozo recently compared 525 home loans from 88 financial providers for the Mozos Experts Choice Awards to find the most competitive offerings on the market for both owner occupier and investor home loans.

Newcastle Permanent took out home lender of the year while loans.com.au won awards for both low cost, offset and investor home loan.

Click here to enlarge.

No RBA movement since 2016 isn't stopping rate rises: Mozo

Click here for the full list of Mozo Expert Choice Home Loan award winners.

Comparing loans, the Experts Choice home loan judges found that the potential savings between an average and competitive loan was up to $68,400 based on a typical loan of $350,000 over 30 years.

When it comes to customer satisfaction, the big four banks ranked poorly with 70 percent of mortgage holders feeling dissatisfied about their current mortgage rate.

Despite this, only 17 percent consider making a switch. Smaller banks fared slightly better with nearly 60% of respondents believing their home loan is competitive.

Only 27 percent of Tasmanians have a rate above 4 percent compared to a whopping 63 percent of mortgage holders from Northern Territory.

Interestingly, Tasmanians are fiercely loyal to their banks with an overwhelming 91 percent saying they would not consider switching banks.

 Mortgage holders in the 25-34-year-old age bracket were most like to switch with one in four considering a change in provider while only 8 percent of mortgage holders over 65 years consider making the switch.

With the banks reserving their best and brightest deals for new customers, its worth shopping around to secure the best home loan for you. Mozo research shows that there are owner occupier home loans on the market with rates as low as 3.39%, says Lamont.

 

 

  

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Mozo Home Loan Rates

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