'Bank Wars' Good For Competition, But Consumers Need To Tread Carefully

Monday February 21, 2011

The so-called 'bank wars' initiated by National Australia Bank and joined with gusto by other players such as the Commonwealth and Westpac are good for competition, but consumers need to tread carefully according to Aussie's Founder and Executive Chairman Mr John Symond.

"Competition is always a good thing, but there is a lot of "noise" coming from the banks at the moment, which in essence is positive for the Australian public, but many of these offers come with caveats," Mr Symond said.

"Some are offering to pay exit fees, which will be abolished from July 1 anyway, while others are offering special 'honeymoon rates' to switch over, which then revert to higher rates down the track.

Mr Symond said it would take the average person several weeks, or even months to research the hundreds of products available on the market today.

"There are many factors which have to be taken into account such as application fees, monthly account fees, and then revert to higher rates when the initial term is over," he said. "Don't get hooked in by these rates, as they could end in a nightmare when the honeymoon is over."

Mr Symond said it was advisable to use an accredited broker to help research and handle the application and settlement process on the borrower's behalf.

"Negotiating this minefield of fees and charges can be very difficult for the average consumer," he said. "It pays to use an accredited broker, who is dealing with all of the banks on a day-to-day basis and can advise as to the most suitable product for your circumstances."

Mr Symond said there are a lot of discount offers which are not advertised on the banks' individual websites, and are 'spot' offers which are communicated through broker channels.

"A broker will know the most up-to-date offers and discounts, while it may be more difficult for the average borrower to find this information," he said.

An Aussie Broker will offer guidance, assess eligibility, lodge the application and then support the borrower through the home loan process. Aussie Brokers are available 24 hours a day, seven days a week, in all capital cities and regional centres at the request of customers who call Aussie on 1300 44 55 66.

As one of the country's largest non-bank providers of financial services, Aussie has a loan book of over $40 billion. There are now over 145 retail stores and 750 brokers across the country ready to help customers get a better deal on their finances.

For an interview with John Symond, please call:

Brooke Stoddart
Senior Manager – Public Relations
02 8297 0381

Tim Allerton
City Public Relations
0412 715 707

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