Is your bank laughing at you?

A must read for ANZ, Commonwealth, AMP and Suncorp clients.

It might sound strange but the way banks are treating their customers these days it wouldn't surprise me to learn of bank executives mocking their customers. Put simply, banks are charging their loyal existing customers higher interest rates than new customers.  This would be like ordering a flat white at your favourite cafe, presenting your loyalty card and being told that it will cost $4 instead of $3 because you’ve been there before.  No one would put up with it, but bank customers do which makes me wonder whether the bank executives are laughing all the way to the...bank.

Though banks haven’t reduced their interest rates, quite a few of them have been increasing their discounts for new customers.  This means that existing customers are stuck with the rate they got when they took out the loan, while someone who has recently taken out exactly the same loan could be enjoying an interest rate up to 0.35% lower.  Hardly seems fair does it?  There aren't many businesses out there that penalise their existing customers but reward new ones.  Really, it should be the other way around, right? 

The main culprits here are ANZ, Commonwealth, AMP and Suncorp.  Needless to say, I'm very angry about this situation as many of my clients have ANZ, CBA, AMP and Suncorp loans.  I have been discussing this crazy inequality with my contacts at the banks with differing levels of success, demanding that they give that discount to my clients who got their loans before the discount was in place.  This would mean that many of you could get an interest rate of up to 0.35% lower than what you are currently on, saving you a significant amount of money over the term of your loan.  Commonwealth and AMP have pretty much flat out refused to even consider it at the moment.  ANZ however, have relented and will apply the same discount that they are giving to new customers to existing customers as well, but only if the pricing request is submitted by me.

I have started contacting my ANZ clients who are eligible for the discount, but there are quite a few of you so my apologies if I haven't been able to get to you all yet.  If you would like to have this discount applied to your home loan, please email me at dave@compasshomeloans.com.au and I will let you know what is required.  Also, if you have any friends or family that you know are with ANZ and want to check that they have the best rate possible with them, please get them to email me too.  I'll be able to tell if they have the right rate and can submit a pricing request on their behalf as well.

As for Commonwealth, AMP and Suncorp clients, I will continue batting for you but I'm honestly not confident that they will come to the party.  If this makes you angry then I'd suggest you give me a call so I can show you some alternatives.  Banks are going to keep laughing at their customers until their customers start voting with their feet.  Of course, the cost of changing lenders needs to be calculated carefully and if this cost cannot be recouped in saved interest then it could be in your best interests to tough it out with your current bank until something better comes along.  My job is to show you those calculations to make sure you are fully informed.

Until my next whinge,

Dave.