New research shows that loyalty is an expensive bank trap for young mortgage holders.

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New research shows that loyalty is an expensive bank trap for young mortgage holders.

New research shows that the first bank to be loyal to your account, or the same bank as your parents, is a costly trap for young homeowners.

This has a particular impact on Australian consumers, who are “unexpectedly” loyal to a generation that supports the retention of large bank customers. But for those who are said to have changed Banks since their youth, the loyalty of these borrowers is likely to be high.

Mortgage association of Australia (Uno Home Loans), a new study shows one 5 of Australia’s mortgage holders is one of their childhood or the same bank Loans, the report said the interest of customers an average 20 basis points more than the others.

Since childhood, in particular, Banks used the sort of, or parents may pay an additional $1272 a year, including secondary housing prices in Sydney, Melbourne, $1188, $780 in Canberra, Brisbane, $600, $600 in Perth and Adelaide is $564, hobart for $408, according to the survey of the uno, “more than 30000 dollars in loan period”.

The survey of 1500 people, more than 10% of mortgage holders in childhood with their bank housing loans, more than 7% of people with their parents in the same bank loans, 6% with the lender’s loan, two check box. The total number of australians connected to mortgage lenders is 23.7%.

“The loyalty of [Banks] is very striking from childhood or from our parents.”

Vincent Turner, chief executive of home loans.

Uno Vincent Turner, chief executive of Home Loans (Vincent Turner) on the “Domain name (Domain), said:” “(bank) loyalty from childhood or parents a surprise – this is an ingrained behaviors, or just a lethargy.”

“In the financial services industry is partly driven by fear and trust, so it makes sense, but if this loyalty has hurt you, so you must think ‘I am a loyal, but only to a point’. ”

According to the report, have their own childhood or parent bank mortgage holders of its own property an average interest rate of 4.5%, and choose another lender Australian average rate of 4.3%.

For investors, for the parent bank of childhood or bank housing loan borrowers, the average rate of 4.8%, and choose another bank of the Australian average interest rate of 4.6%.

The data show that long-term customers are usually with one of the big four Banks, the federal bank, westpac, anz, or the national bank of Australia.

“I would think it must be related to the four major business – if you just think about the schedule, if it is who grew up in the 90 s, so it could be the main is that big Banks, or regional,” Mr Geithner said.

Commonwealth bank is one of the biggest four schools more le tuo, club, there is no direct dismissed the uno results, think long-term customers tend to pay more when borrowing costs, he commented that: “as one of Australia’s biggest housing lender, federal bank close cooperation through our extensive branch network, call center in Australia and digital channels, our loyal customers can provide all kinds of benefits, to meet their changing needs. ”

At the same time, the bank marketing strategy for children was strongly opposed at the end of last year in the consumer advocacy group Choice of consumer advocacy group Choice, which was called “elimination”.

According to the report, the multicultural plan relies on “controversial payments” to sign up young customers, especially on the basis of the number of accounts opened, to pay tuition fees to the CBA.

When a children under the age of 12 young open a federal bank savings accounts, he or she automatically be included more le tuo leah club, according to reports, each through the plan to open a student account, CBA pay for $5, a school, each deposit up to $10.

“It is time for the Banks to get rid of the financial literacy education and prevent them from paying their school commissions to their products,” chief executive Alan Kirkland said in the report.

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