Apathy Syndrome: Aussies lose out by not switching

Apathy Syndrome: Aussies lose out by not switching
Date of Publication: Thursday, 30 August 2012 11:01

Aussies are losing out because they are not always prepared to switch their deposit accounts and home loans to achieve better rates.


Research from UBank has found that almost a third of Australians (31%) believe it will cost too much and time too much time to switch their financial products.


Of over 1,000 people polled, almost 40% revealed that they had no idea about the rate they were paying on their home loans.


Aussies remain unsure about shopping around for better deals, it is thought, because of the anticipated time and cost involved.


And Alex Twigg, general manager of the NAB-owned UBank, said that "apathy syndrome" was getting in the way of customers being able to find better deals quickly and conveniently with no charges in the switching process.


"The reality is switching is really simple," he said. "It’s really quick and you can make really big savings fast." He added that the average homeowner could save close to $2,000 per year by changing their home loan to a more competitive product.


Regulations introduced last year now ban mortgage exit fees (read more), but mortgage deals agreed prior to this legislation may still be subject to exit fees.


This is the benefit of user-friendly home loan comparison services, which can make it much easier for consumers to determine whether they can find a better deal, even accounting for additional fees.


Bret Clement

Thursday, 30 August 2012 11:01
Bookmark and Share

Make a comment on this article

Please enter the following letters in the box below.
We're very sorry for this but we just need to ensure
that you are not a computer.