Earlier this month, Treasurer Josh Frydenberg announced that the Australian Competition and Consumer Commission (ACCC) has been commissioned to conduct a Home Loan Price Inquiry.
The inquiry will review pricing behaviour from 1 January 2019 to examine:
- the differences between advertised rates and the prices actually charged or paid;
- the differences between rates paid by existing customers and those paid by new customers (front and back-book pricing behaviour);
- pricing decisions in response to changes to the official cash rate; and
- factors preventing customers from switching to cheaper home loans.
The Treasurer is encouraging customers to press for a better deal and then look to refinance if they were not satisfied.
Can switching REALLY save me money?
One of the key outcomes from the Royal Commission was that existing Bank customers are not being rewarded for their loyalty, with the big four banks being called out by the ACCC for offering home loan discounts to new customers but not existing ones. This new inquiry will shed even further light onto this issue.
It is important to realise that refinancing your loan at the right time can not only lower your monthly payments and help with your monthly budget, but it can also save you thousands of dollars in the long run. On top of this, refinancing you loan offers the opportunity to tap into new features such as offset accounts and the ability to have your salary paid directly into the loan.
If you have some compelling reasons to refinance, such as your current bank did not pass on the past few interest rate cuts, then refinancing may be a very good option for you.
Get an Obligation-Free Home Loan Assessment
Devoting 15 minutes of your time to reviewing your home loan could save you thousands of dollars, or at the very least, offer you peace of mind that your existing home loan is still meeting your financial goals. Learn more.