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A new home loan index ranking lenders to find the best products will potentially save consumers tens of thousands of dollars and level the playing field.
1300HomeLoan’s Australian Lenders’ Index, “is set to revolutionise the Australian home finance market and save mortgage holders tens of thousands of dollars over the life of their loan, depending on which lender they choose," managing director John Kolenda said.
"Any savings that can be found for mortgage holders are of benefit to the overall home finance market, which according to the latest ABS [Australian Bureau of Statistics] housing finance data remains sluggish due to subdued consumer confidence.
"Over the long term, this index will create greater competition between lenders and force down interest rates. Lenders will be exposed to greater consumer scrutiny and we will continue to track and report on exactly what rates major lenders are delivering and whether consumers are benefitting or getting ripped off. The rankings will be updated monthly."
NAB’s Homeside has recently been ranked at the top for lender performance, delivering the best home loan product.
"The Australian Lenders' Index has also found that Homeside has been providing consistently the best rates over the past five years,” Mr Kolenda said.
A customer with Homeside would potentially save $31,980 over the life of their loan relative to the worst performing lender.
Investors can test their current loan on the website as well.
The index ranks lenders based on historical and current interest rate statistics from March 2008, rather than solely the advertised rate.