Andrew Browne Dip.FS (FB) – Director – TAG Financial Group (Click Image for Bio)

 

Guest article by Andrew Browne of TAG Financial Group

Recently I was speaking to a client and we were discussing why they originally chose to be with a particular bank.

My client told me that they had simply followed in their parents footsteps and had never considered switching banks.

When I asked why, they simply replied – ‘Loyalty’.

This really got me thinking about what loyalty means to clients, whether it was reciprocated and if not, what was it costing them?

It seems that my client was not alone.

WA Leads the Way on Bank Loyalty

Recent research has shown that a quarter of people aged between 18-34 have never switched from their childhood bank account.

Additionally, new figures from finder.com.au show 47% of Australians are staying with one bank for their financial needs.

West Australians are the most loyal, with 56% of people having a relationship with just one bank, compared to 44% of Queenslanders and Victorians.

Simply put, over half the eligible people in Western Australia are loyal to their banks, and this could be costing them dearly.

This is because, as most Australians know, the interest rates that banks charge new customers can consistently be lower than what they charge existing customers.

Therefore, it pays to shop around.

Do your research or even easier… get us to do it for you!

If you know what other banks are offering you can be armed with the information to keep your bank honest.

…the savings were almost $28,000 over the term of the loan!

I recently did exactly this on behalf of a client and the savings were almost $28,000 over the term of the loan!

However, if your bank doesn’t play the game then you must be prepared to switch banks! If they don’t match the rate then switching your bank might result in a better interest rate and substantial savings!

Whilst it may not seem like a lot of money in the short term, ask yourself how much you will save if you multiply that amount by the average mortgage period (30 years or more). Suddenly you can see that it certainly pays to consider your options.

So, it will take a bit of research, but like half of Australia, maybe you should ask yourself if your banking loyalty is working both ways. Because if it’s not, it could be costing you thousands.

‘Book a FREE home loan health check’

At TAG we encourage regular reviews of your lending to ensure your loans are meeting your requirements, and that you aren’t over paying when it comes to your interest rate. And given the recent events discussed above, now is the time to take advantage of the opportunities on offer.

For those looking to return to the Perth property market, an expert who is working for ‘you’, not for the banks, will be best positioned to source you a deal that takes advantage of the improved lending conditions. The Team at TAG are just such experts, so we encourage you to pick up the phone and get us on your side.

It might be the smartest call you make this year!

Call me on 0413 787 441 and you can learn more about Tag Financial Group at www.taggroup.com.au