HOME loan borrowers are paying an extra $2.7 billion a year in repayments because they don’t shop around for the best deals.
Despite the major banks charging higher interest rates than smaller lenders, about 90 per cent of home buyers still choose one of the more expensive big four banks, according to financial research company InfoChoice.
After this week’s interest rate increases by the major banks, more than 60 other lenders had cheaper home loan rates, the research found.
“Australian consumers are usually pretty savvy when it comes to their finances and yet they continue to miss significant opportunities for savings when it comes to home loans,” InfoChoice chief executive Shaun Cornelius said yesterday.
“The current reluctance to look beyond the majors is not doing anyone, least of all themselves, any favours.