A majority of Australians have admitted they would switch banks if they could find a lender that offered a home loan at least 50 basis points lower than their current mortgage rate.
According to the annual CUA National Mortgage Survey: Expectations and Intentions, 86 per cent of mortgage holders with a big four bank would switch for a lower interest rate.
In addition, 70 per cent of mortgage holders said they would leave their current big four lender for lower account fees and charges, while 78 per cent said they would switch if their lender failed to adjust rates following an RBA rate cut.
CUA’s general manager, products and marketing, Jason Murray said it was clear from the research that an overwhelming majority of mortgage holders with a big four bank are unhappy with their current lender.
“The reality is, mortgage holders with the big four banks are looking for a more competitive option, with 70 per cent of big four bank respondents saying they would switch or consider switching for lower account fees and charges,” Mr Murray said.
“If the RBA cuts rates in February, Australians are sending a clear message to their lender.
"More than three quarters of all mortgage holders would switch or consider switching if their current lender failed to adjust interest rates following an RBA rate cut. Overall, Australian mortgage holders are looking for a lender that provides competitive rates and makes decisions that are in the customer’s best interest.”