Borrowers need to look beyond banks

More than ninety per cent of home loan borrowers choose one of the big banks for their home loan, despite the fact that they do not offer the cheapest loan deals. More than 60 other lenders, including many credit unions, undercut the big banks.

The average standard variable home loan rate on offer from a big bank is now more than 0.5 per cent higher than their nearest non-bank rival says Infochoice chief executive Shaun Cornelius.

The difference in rates between a big bank and a non-bank rival could add three years of repayments to the average mortgage said Cornelius.

Source: Herald Sun