Big bank home loan borrowers are getting restless
The customer satisfaction ratings of the big four banks are being dragged down by their home loan customers. Home buyers with mortgages from a big four bank are registering less satisfaction with their lender than they did one year ago. Generally speaking, Australians report they are happy with their bank but the scores given to the big lenders by their own home loan borrowers are significantly below that of their other customers.
The percentage of Australian banks' personal customers who are at least fairly satisfied with their financial institution is 81.6 per cent according to Roy Morgan Research's Single Source survey of 50,000 people. However the customer satisfaction scores of home loan customers is in decline, while the satisfaction of non-home loan customers is on the rise, reported Roy Morgan.
Which big bank is most popular with home loan borrowers?
About 80 per cent of all Australian home loan borrowers are customers of one of the big four banks. About 25 per cent of all Australian home loan borrowers are with the biggest Australian bank of all – the Commonwealth Bank.
However, mortgage customers of the Commonwealth Bank are significantly less satisfied with their bank than the non-home loan customers of the CBA. (75.9 per cent compared to 82.5 per cent). Commonwealth Bank’s No Fee Variable Rate Home Loan is currently charging 4.65 per cent (comparison rate also 4.65 per cent).
National Australia Bank is the only big four bank to show an increase in home-loan customer satisfaction in this latest Roy Morgan survey. 73.2 per cent of NAB’s home loan customers said they were satisfied with their bank (up 0.2 per cent). This was still markedly less than the rating given to NAB by its non-home loan customers (79.2 per cent). NAB’s Base Variable Rate Home Loan – Principal and Interest is currently charging 4.10 per cent (comparison rate 4.14 per cent).
ANZ scored 78.5 per cent of “satisfied” home-loan customers and has the highest home loan customer satisfaction rating of the big four banks. ANZ’s Standard Variable Loan is currently charging a variable rate of 5.25 per cent (comparison rate 5.35 per cent).
Which major lender has the highest home loan customer satisfaction ratings?
Small mutual banks and credit unions usually score much higher customer satisfaction ratings than the big four banks. Of the bigger (non-big four) lenders two have customer satisfaction ratings much higher than all others.
Bendigo Bank has the highest home-loan customer satisfaction with 96.2 per cent. Bendigo Bank’s Bendigo Basic Home Loan is currently charging a variable rate of 4.28 per cent (comparison rate 4.46 per cent). ING DIRECT is close behind Bendigo in customer satisfaction scores with 93.4 per cent. ING DIRECT’s Orange Advantage home loan is currently charging 3.74 per cent (comparison rate 3.96 per cent) on loans over $150,000 with an LVR under 80 per cent.
The next best customer score is from BankWest with 85.1 per cent).
You can browse the home loan market and compare loans from all of Australia’s significant lenders here.