Commonwealth Bank borrowers flooding out the door

Since the Commonwealth Bank raised its standard variable rate by 0.45 per cent on Melbourne Cup Day, thousands of borrowers have flooded the market looking a better deal. A Commonwealth Bank customer with a typical $300,000 loan could save up to $226 per month or $67,000 over the life of a 25 year mortgage by switching to the cheapest available mortgage, according to financial comparison service Infochoice.

Commonwealth Bank is currently advertising a standard variable mortgage rate of 7.81 per cent, the highest of the big banks. Non-bank lender Better Option is charging 6.64 per cent – a full 1.17 per cent below the Commonwealth. Not surprisingly, Commonwealth Bank has suffered the biggest fall in mortgage market share of any lender since November, according to official data released last week by the Australian Prudential Regulatory Authority (APRA).

Westpac and ING Direct also suffered big falls in market share. Other banks to lose out in the mortgage wars since Melbourne Cup Day include ANZ, Bank of Queensland, Bankwest and Citigroup. In contrast NAB has grew its’ market share strongly in November. ME bank also performed well, as did Suncorp, Bendigo, and AMP Bank.

Source: Sunday Mail

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