Posted to Herald Sun (9/2/2012) on 9/2/2012 at 2:58 AM
Commenting on "Ten of thousands of home owners prepared to switch over rates"
http://www.heraldsun.com.au/news/more-news/ten-of-thousands-of-home-owners-prepared-to-switch-over-rates/story-fn7x8me2-1226266201942
It's easier said than done. Furthermore, most people find it too troublesome to keep switching banks - CBA may be higher in interest rate today, but after switching ANZ may take the cake. This is no difference from shopping around for cheap petrol.
In many cases, real interest rates chargeable are not published publicly, and until one sits down to negotiate with the lender, there is no guarantee that the self-proclaimed bargain hunting expert actually wins the day.
Negotiation demands confidence and skills. Many borrowers are unlikely to do a good job when confronted by experienced professional lenders. Compounding this is that negotiation normally takes place at the lenders office, and therefore gives the lenders a winning edge, at least at the psychological level.
Borrowing approval criteria are getting more and more constrained; those whose income has been reduced due to reduced hours of work may not have the same borrowing power as before. Borrowers are stuck, and unable to refinance their loan at the same magnitude.
Commenting on "Ten of thousands of home owners prepared to switch over rates"
http://www.heraldsun.com.au/news/more-news/ten-of-thousands-of-home-owners-prepared-to-switch-over-rates/story-fn7x8me2-1226266201942
It's easier said than done. Furthermore, most people find it too troublesome to keep switching banks - CBA may be higher in interest rate today, but after switching ANZ may take the cake. This is no difference from shopping around for cheap petrol.
In many cases, real interest rates chargeable are not published publicly, and until one sits down to negotiate with the lender, there is no guarantee that the self-proclaimed bargain hunting expert actually wins the day.
Negotiation demands confidence and skills. Many borrowers are unlikely to do a good job when confronted by experienced professional lenders. Compounding this is that negotiation normally takes place at the lenders office, and therefore gives the lenders a winning edge, at least at the psychological level.
Borrowing approval criteria are getting more and more constrained; those whose income has been reduced due to reduced hours of work may not have the same borrowing power as before. Borrowers are stuck, and unable to refinance their loan at the same magnitude.
