Switch and Save

When it comes to switching lenders, most people ask the same questions:

• How much money will I really save?
• What options do I have outside of the major banks?
• Is it actually worth the hassle?

If you’ve recently thought about shopping around for a better deal, go ahead and compare a Yellow Brick Road customer and a Westpac customer. Let’s say each customer has an average $350,000, 30-year mortgage. The Westpac customer, with a standard variable rate of 7.46%, will pay $55,440 more over the life of the loan than the Yellow Brick Road customer who has a rate of 6.84%. Even a NAB customer, who has the lowest standard variable rate of the big four banks, will pay $38,160 more than a Yellow Brick Road customer.

Take a look below and see how you compare.

Home Loan Comparison

Lender	Standard Variable Rate % p.a.	Comparison Rate*	Monthly Repayments*	How much more you’ll pay per month**	How much more you’ll pay over 30 years **
Westpac	7.46%	7.51%	$2,438.00	$112.00	$40,320.00
CBA	7.41%	7.47%	$2,426.00	$100.00	$36,000.00
ANZ	7.36%	7.40%	$2,414.00	$88.00	$31,680.00
NAB	7.31%	7.36%	$2,402.00	$76.00	$27,360.00
Yellow Brick Road	6.99%	7.01%	$2,326.00	n/a	n/a

Source: mozo.com.au
*Based on $350,000 principal and interest loan over 30 years
** Compared to Yellow Brick Road repayments

How does Yellow Brick Road put forward such competitive rates?

Yellow Brick Road is able to offer our customers lower rates because we’re willing to absorb more of the costs associated with lending. The big banks are more reliant on funding sourced from overseas, so they can’t do the same because taking on costs eats into their profits and takes away from their margins. Because we’re independent of the banks, we’re able to be more competitive with our rates and pass those savings on to our customers.

So what options do you have outside of the majors?

Yellow Brick Road has branches all over the country. And it’s not just us - there are lots of lenders outside the major banks that can get you a better deal.  Mutuals, regional banks, building societies and credit unions are just a few alternatives. There are over 119 mutuals* in this country alone. Have a look at the different options for yourself – Canstar is a great website that will give you a better idea of how your loan compares to what else is in the market.

Making a switch isn’t as complicated as you think. Go and visit your local branch with your income details, mortgage balance and current interest rate and we’ll be able to tell you how much you can save. 

When it comes to your mortgage, you do have a choice. Tens of thousands of dollars in savings should be enough to at least get you thinking.

Find your nearest Yellow Brick Road branch.

*Source Abacus www.abacus.com.au