Mortgage holders have no one to blame but themselves for banks not passing on the full rate-cut to borrowers, according to Yellow Brick Road boss Mark Bouris.
Speaking with News.com, Mr Bouris said reliance on the big four was opening the doors for the majors to “hoard” rate cuts as they have a 92 per cent share in the lending market.
“It’s typical oligopoly behaviour,” he said.
“Big banks don’t need to grow the number of customers they have, they are better off not growing their business but keeping their margins wide by charging customers higher rates.”
The Big Four have passed on full rate cuts in the past when they had a smaller share of the market and needed to fatten their mortgage books.
But banks are now cashing in on mortgage holder apathy with borrowers reluctant to seek out cheaper loans, Mr Bouris said.
“Go and find the best rate, it doesn’t matter where it has come from as long as it is a reputable source.
“Ask the right questions, get the right rate, that’s all that matters.”
He says changing mortgages for borrowers on a variable rate costs between $300 and $700.
“If you look at that cost compared to what you save over the life of the loan, there’s a huge difference.”