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Four non-bank lenders have emerged as the first participants in the Big Bank Switch campaign, with the lenders promising to deliver group discounts to more than 40,000 mortgage customers.
Last month, the self proclaimed people’s watchdog CHOICE joined hands with One Big Switch to launch the Big Bank Switch campaign which promised to champion home owners a better deal on their mortgage.
Yesterday, the South Australian based mortgage holders that registered their interest with the campaign were told they could be eligible for discounts between 0.1 per cent and 0.4 per cent off the lowest available variable rates from Mortgage EZY, RESIMAC, Firstmac and Mortgage Port.
The remaining registered home owners are expected to learn what discounts they will be eligible for over the coming month.
Speaking to The Adviser, Mortgage EZY chief executive officer Garry Driscoll said this campaign was a great opportunity for non-bank lenders to mark their place in the mortgage market.
“We think it is a good opportunity for non-bank lenders to show Australians that we are still alive and kicking and ready for business,” he said.
“The non-bank sector has had to readjust itself after the removal of exit fees, but this campaign gives us the chance to show that we are still strong and very competitive.”
Mr Driscoll said the registered home owners could enjoy the mortgage discounts within the next month.
While the campaign gives the non-bank sector a chance to establish itself as a true competitor to the big four, brokers are unlikely to be as pleased.
Not only are a significant number of brokers likely to lose their clients as a result of the mass switch, but it was only a few years ago that CHOICE was urging borrowers to avoid brokers altogether.
