Lendi Loyalty Tax data shows Australians can save $70,000 by shopping around
The Lendi Loyalty Index shows banks and lenders are prioritising new business over existing clients, which is critical as we likely head to another significant rate rise today.
Lendi data shows on average, banks are charging new customers rates that are 86bps lower than rates charged to existing customers, while the Big 4 are charging 91bps less for new customers.
In real-dollar terms, a difference of 91bps on a $500,000 loan equates to more than $2,500 savings per year or approximately $70,000 over the life of the loan.
Homeowners who refinance today and save on their ‘loyalty tax’ could potentially reclaim the last two RBA rate increases and tens of thousands of dollars over the life of their mortgage.
This data shows all Australians with a mortgage should be actively interrogating their loan and seeking improvement, through reaching out to a broker and assessing their options.
Homeowners can also calculate their potential savings by using Lendi’s free online repayment calculators.
To calculate loyalty tax trends, Lendi compares backbook and frontbook data collected from its home loan platform. Backbook data is when a customer advises their current lender and rate when they create a new account on the Lendi Platform, which is then compared to their frontbook data, their actual rate on the day of settlement.