RateCity research shows that the cost of staying with the big four banks over the past 10 years, rather than switching to a lower rate, was $14,215 for someone with a 300,000 mortgage, and $23,692 for a person with a $500,000 mortgage, based on a 30-year loan term.

 

RateCity money editor Sally Tindall said: “The big four banks will be lifting their variable rates this month by as much as 0.20%. Meanwhile, some of the smaller lenders are continuing to lower rates, particularly for owner occupiers.”

 

Some people were hesitant to switch from a major bank due to loyalty, hidden administration fees and a potential drop in customer service.

 

The average cost of upfront fees to switch is $421, while 430 loans on the market have no upfront fees at all says Tindall.