Perth Voice Interactive

The majority of Australians have never changed or reviewed their financial institution, preferring to use the one lender for all of their needs. This choice could be costing home owners thousands of dollars in extra interest being paid on their home loan because they have not considered other more competitive options available in the market.

According to Mortgage Choice’s Money Survey, 46% of respondents 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, local Mortgage Choice franchise owner Ruth Hatherley said 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 to partner with is meeting all of their needs.

“Looking at the data, the number one reason why Australians switched lending institutions was because they could source a higher savings rate elsewhere. The second most popular reason for changing lenders was because Australians found a better home loan deal with another financial institution,” she said.

Both of these reasons are valid motives for changing lenders. Some Australians are acutely aware that there is another lender on the market that can offer them a better deal or rate that suits their needs. Those who decide to partner with a lender that perfectly suits their needs will find they reach their financial goals sooner. It isn’t difficult for Australians to review and potentially change lending institutions.

“Australians shouldn’t take a set and forget attitude towards their finances,” Ms Hatherley said.

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.

For more information on retirement and/or your financial advice options, contact Mortgage Choice today.