We care about the cost of a Coffee but not the cost of our Mortgage

I have worked in lots of different areas within banking over my career and have a solid understanding of how the banks make money or to put it another way take money. I take it for granted and assume everyone realises that banks often rely on us being complacent to help put a smile on their shareholders faces.

However, it was only the other week when I was sitting around with a group of friends that I realised my assumptions were in fact incorrect. I asked around the table, what was the current interest rate on the property they owned? I appreciate it wasn't the most exciting topic for a Saturday night but I was astounded when not a single one of them could answer my question and worse still not a single one could remember the last time they had checked since buying their property. I'm assuming they were just happy that the banks had their best interests at heart when taking $3000 from their account every month. Ironically that morning we had also had a conversation about how expensive coffee was in Perth. Not to belittle the topic but if you're worried about the cost of a coffee shouldn't you be worried about your single biggest monthly expense?

It made me wonder why people don’t worry about it and why they don't check it. I assume it has something to do with a lack of time, a high cost or general difficulty but I'm not 100% sure? All I know is that people should be informed.

By simply telling me your estimated property value, current loan amount & interest rate I could potentially help you get a better deal, now does it seem that hard? The best part is that is now easy to make the change.

So, would it really save me that much? Lots of banks reel you in with great introductory offers and then a couple of years later switch you onto their standard variable rate. If you are with one of the big 4 their average standard variable rate right sits at about 5.60% give or take, while the best deals in the market sit around 4%. To put that in monetary terms that’s an extra $8k a year you are paying on a $500k loan that you don’t have to. Now that's a lot of coffees.

So spend 15-minutes of your time and see what we can do for you. Give us a call on 1300 GOBEYOND or email on enquiries@beyondbroking.net.au

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