Borrowers need to reconsider competition and 'vote with their feet'

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Borrowers are being urged to 'vote with their feet' by reconsidering the competitive rate and service offerings from some of the major non-banks after rates on many of their most popular loans have only risen in line with official figures, rather than above them.

Resi's Head of Consumer Advocacy, Lisa Montgomery, says after borrowers made the flight to the perceived quality of the big banks when the global financial crisis first hit, events of the last week have confirmed it's time to reconsider the offerings of major non-banks for all the original reasons they became popular more than twenty years ago - i.e. lower rates and genuine customer service.

She says: "The competition provided by the major non-banks never really went away, but certainly suffered as a result of borrowers who were spooked into thinking they would be better off with a bank loan.

And now, those people are currently not only paying more for their mortgage than they need to, but are also finding themselves understandably disenchanted with the way they are being treated as a customer - leading many to question their reasons for returning."

Montgomery says it's time for those borrowers to vote with their feet and reconsider the offerings of non-banks who have not only weathered the financial crisis, but are well placed to once again be the knight in shining armour for many hard-working Australians.

She says: "Three official rate rises in a row has not only created a growing disparity in standard variable rates between the banks and non-banks, but has also widened the playing field to which all borrowers have access to, resulting in an increasing number of recent new enquiries to established non-banks such as Resi.

She says: "We are now hearing from new customers wanting to know not just about the deals on offer but more importantly about what level of service they can expect - something that non-banks are not only famous for focusing on, but remains one of our key differentiators in the mortgage market."

Montgomery says all mortgage holders and prospective borrowers need to remember there are a large number of very appealing and innovative loan options available from major non-banks, with rates consistently lower than the banks - and backed by a core commitment to service excellence, most commonly provided by local representatives dedicated to empowering the customer.

So be kind to your financial future by not letting the banks to ever dictate the rates. By voting with your feet and choosing the non-bank alternative, you can ensure that competition stays in the lending market place and the value and quality of lending service provision is maintained. 

For more information on how to get the most competitive loan and the highest quality service, give Resi Home Loans a call today on 136 126.

The above information is supplied by Resi Mortgage.

Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Mortgage.

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