This is a pretty daunting reality for banks when you consider that a home loan is a very big account for a bank to manage and have on their records.
To lose 50% of home loan applicants would impact their bottom line substantially, yet this is what Australian property investors are doing.
I don’t need to tell you that 50% is a very large percentage when you’re looking at stats. They are picking up their feet and walking out straight into the arms and hands of non-major lenders.
Whether leaving the banks behind is a wise idea or not is up for debate, but there must be a serious reason why half of all Aussies feel it’s the best move for their investments.
Since the Royal Commission has started with its inquiries into Australia’s banks, owners of property are making beeline exits for the front doors of the bank. Reports are showing that no matter the security in the relationship between the bank and the consumer, it has still wildly unsettled many, to the point that they would rather trust their investments with a non-major lender.
Loans and investments are leaving 4 of the major banks more and more as we speak!
Why are investors leaving their banks behind?
It’s safe to say that the larger banks of Australia have always been a safe choice when investing any hard-earned money into something substantial. What has this safe haven created though? It’s indirectly created a situation where the consumers are no longer treated with a personal touch, their accounts are no longer personalised, and everyone is just seen as a number on their books.
A profit driven culture
When we used to enter the banks in the golden days (do we still refer to them as that?), you were met with respect, your account was valued and you felt appreciated for having chosen this particular bank, whichever it may be, to invest your money with. Banks felt a very loyal obligation to treat their customers with respect. These days it has become a profit-first culture, which has rendered the consumer population rather upset and consequently driven them out of most major banks in Australia.
Smaller lenders have been on a mission to attract those bank leaving customers right into their doors with offers that you simply cannot turn away. Lower rates and bonuses are just a few of the ways in which they've been achieving this. They’re luring the investors and anyone that needs a loan, but everyone should pay attention because when lenders become competitive – the consumer always wins.
Use a smaller home loan provider & SAVE
If it’s a first-time property purchase for you, you can benefit from using a smaller lender. If you’re simply after a better rate you can also benefit. The point is that no matter the reason behind your home loan application, there is a lender out there willing to assist you and at a competitive rate. Use the online calculators and comparison sites to easily compare rates from all the trusted lenders in Australia. Not only is it quick and easy, but you even gain access to some of the best in the business for personalised advice!
Make the choice, hand over your details and get your loan!
A low rate can make all the difference at the end of the day when you compare the total on the loan to the total you would have paid at the higher rate. With the savings, you have the opportunity to reinvest that money or draw it out and put it to good use!
You’ll be walked through each step of the way just as a bank would have assisted, but perhaps with even a greater smile and helping hand, it would seem. Australians are looking for help when it comes to their mortgages and these non-major lenders are offering unique and free services in certain aspects of the process to make it all the more convenient for you.
Make use of a home loan broker
Simply furnish the broker with your personal details and let the experts do their job! They’ll source the best home loan rates available and find a lender that suits your needs from a long list of lenders available to you.
There’s no reason to have any concerns with going this route over a major bank. What you need as a consumer is a professional service that has your best interests in mind. There is a plethora of these lenders available and eager to get your investment managed in the best way possible and that is why Aussies right now are choosing good service over the security a well established bank provides.