Can banks be trusted to give you the contracted discount on your home loan?
The simple answer is no!
How many times do people with a home loan check what their current interest rate is? Even if they look at it how do they know that the correct interest rate is being applied?
Often the interest rate is not displayed “in your face” on a home loan statement. More often it is positioned a bit out of sight, like next to a transaction in the middle of page two or three.
Last month when I checked what my current interest rate was on my home loan statement I noticed that it was incorrect to the tune of .60% p.a. Of course, the error was in the bank’s favour!
The interest rate had been wrong for many months.
Whilst I was inconvenienced and had to bring this bank error to my bank’s attention, the result was I was given an apology and a refund of $1,197- in overcharged interest.
A wise borrower is vigilant in checking their home loan statement every time one is issued, not only to check any change to their interest rate, but also to ensure the transactions and fees charged are correct.
Banks like borrowers to stay put and they understand most people think it is too much trouble to shop around for a better deal. Especially if the borrow has one or two other accounts with them.
A Mortgage Broker can assist an existing borrower to check if their interest rate has been correctly applied and if there are more affordable products being offered across a range of reputable lenders.
Unlike online loan comparison websites, a mortgage broker can prequalify you with different lenders and explain what products are available that suit your individual circumstances.
Universal Wealth Management