One in two Aussies does not believe banks act in their best interests when refinancing

1 minute read

One in two Aussies does not believe banks act in their best interests when refinancing

by Cameron Micallef 24 January 2021 1 minute read

Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed.

January 24, 2021

Survey results conducted by CoreLogic on behalf of Mortgage Choice have shown that38 per cent of Aussies are looking to take advantage of the record-low interest rate.

However, 53 per cent of respondents do not entirely trust the banks, admitting that they are unlikely to advise them of a better mortgage deal outside of their bank.

A further 49 per cent of home owners said they do not believe the banks always have their best interests at heart.

Despite a mistrust in the banking industry, the research showed that 94 per cent of home owners trust a mortgage broker’s loan recommendations.

Susan Mitchell, CEO of Mortgage Choice, said consumers are often confused by the process of refinancing their mortgage. 

“Faced with what can be an overwhelming choice of home loans, home owners want to be confident they are making the move to a loan that will improve their financial wellbeing through a lower rate, improved loan features, or both,” Mr Mitchell said. 

The CEO also highlighted how banks are limited with their information and are likely to only know the rates provided by their own financial institution. 

“While banks can provide information on their own product suite, they do not have an in-depth understanding of competitors’ products,” she said.

“Mortgage brokers not only provide a broad selection of loans across a variety of lenders, they also take the time to explain why a particular loan is being recommended.” 

“This is very reassuring for consumers and demonstrates that mortgage brokers work in the home owners’ best interests at all times. This important combination underpins the exceptional level of trust that home owners place in their mortgage broker,” Ms Mitchell concluded.

One in two Aussies does not believe banks act in their best interests when refinancing
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About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more

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