One million may quit mortgage deals

Posted @ Feb 1st 2011 5:15pm - By GCPN Property Network
News 162

Nearly one million mortgage holders are looking to dump their current lender within the next six months, according to new research.

Exit fees are no barrier for one in five Australian mortgage holders looking to switch deals, News poll found.

If exit fees were phased out, the proportion leaving deals would more than double, with 40 per cent switching in the coming months.

The results show there will be a lot of movement between brokers in 2011, said Julian Brophy of communications firm Perception Partners.

"The ongoing banking debate is clearly focusing the minds of borrowers on the options available to them, including the ultimate choice of changing to another lender," he said.

The proportion of people saying that they were not likely to change their current home loan lender fell from 82 per cent to 58 per cent if exit fees were phased out.

"With these findings, Australian borrowers are sending a serious shot across the bows of the home loan banking sector," he said.

The survey was compiled from November 26 to 28, with News poll interviewing 1078 mortgage holders aged 25 years or over by telephone.

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