How Banks respond to your loyalty…. by charging you more!

how banks respond to your loyalty by charging you more

Over the years I’ve spoken to hundreds of people who believe that they’re well served by being with the one bank for most of their life. They feel that the bank has done the ‘right’ thing by them and that other banks would be less… well… nice to them.

Some of them believe that the bank they’re with was the only one that would lend to them way back when they first started. They feel that they still owe it some loyalty.

Well that’s nice, BUT, very unlikely to be accurate. Yes, there is often a difference in appetite between the banks for different sorts of deals, but in our experience, it’s very unusual to have a deal that only one bank will do and no other. It does happen, but it’s very rare.

The one thing that is easily verifiable is that once you’ve been with a bank for a few years and you become part of what they call their ‘back book’. You WILL pay more for your mortgage than you will if you shop around.

It is true that for bigger borrowers like businesses and people who can afford to deal in millions of dollars, that banks will often reward long term dealings, but for mum and dad home owners it’s just not the case. So be proactive, talk to us… and save some of your money!

Credit Representative 432231 is authorised under Australian Credit Licence 389328.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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