One big wait for One Big Switch
The Choice Big Bank Switch initiative has kept the 40,300 home loan borrowers prepared to consider refinancing waiting for the past four weeks without any indication of any discounted home loan offers.
“One Big Switch is in a process of negotiation with a number of Australian lenders and is trying to source home loan offers for registrants which offer a genuine group discount,” the registered borrowers were advised four weeks ago on August 17, shortly after registrations closed.
One Big Switch launched in Australia on July 31 with 10,000 consumers registered in the first 12 hours, and 40,000 registered in the first two weeks.
Registration for the Choice Big Bank Switch closed on August 14.
“We are working night and day to try and secure a discount, but the reality is these discussions could take several weeks; we will keep you in the loop the whole way,” an August 17 email advised.
“If One Big Switch is successful in its negotiations with lenders it will then be a matter for you to decide whether any of the group discounts are right for you, and for the individual lenders who may make discount offers to decide if you are eligible to take up any discount offer,” the only email sent said.
On August 29 One Big Switch tweeted: “Discussions with lenders going well.”
But much of its Twitter activity has been about other subjects, including power bill savings.
In late August One Big Switch suggested @OurBankingPower had been sending rude tweets, based on inaccurate assumptions.
Paul Hunyor and Lachlan Harris founded One Big Switch. Hunyor has worked in corporate finance, private equity, and management consulting, and is a graduate of Harvard University. Harris was the Senior Press Secretary to Kevin Rudd from 2006 to 2010.
"We are finalising offers now, but I can’t give a timeline," Harris told Property Observer today.
“We are currently getting all our ducks in a row. I should be able to tell you more early next week," Harris says.
Toby Brennan, Brendan O’Mahoney, and Kate Gauld are all senior members of the One Big Switch Team. Brennan and O’Mahoney both have extensive experience working in the finance and corporate sectors in Australia and overseas. Gauld has worked at several of Australia’s best-known not-for-profit organisations.
“We believe the power of group switching will be good for competition in the mortgage industry,” the website says.
“This increased competition is good for all lenders who want to compete for the business of switchers.”
One Big Switch is a for-profit business committed to helping Australian consumers pay less for their regular household bills. One Big Switch is an Australian Credit Licence holder and a registered member of the Credit Ombudsman Service.
One Big Switch makes no makes no representation that any registrants will be eligible for any special offer or other finance advertised on the website.
The One Big Switch launch was met with claims it was a gimmick by some commentators.
