Don't do business with the Big 4 Banks anymore

[MPmelb]

It is now time for apathetic customers to stop getting ripped off by the Big 4 banks.

The same banks that increase your mortgage much higher than the cost of funds. The same banks that enjoy billions of profit and pay executives ludicrous sums.

There are lots of alternatives out there, people just have to make an effort. Such as credit unions. Shop around. Check out sites such as cannex.com.au

It's sad that people will spend more time looking for their Cup Day races gown/suit than actively seek alternative banking/finance options.

Stop being apathetic, get a better deal and teach these bankers a good lesson. Let the customers voice be heard, start heading thru the exit doors people.

 

[Dazz]

Yeah - tried that...failed miserably.

Asked for a loan from the credit unions to pay out our current loans....their reaction ??

1. The manager laughed and said "We don't have that much. Haha. Do you want to buy us ??" Um - no.

2. Read their standard mortgage contract. The same solicitors who wrote the Big 4 contracts have gone through and written exactly the same clauses to sting you and pin you against the wall. There is no difference.


If you think any other suggested credit provider is any different, you obviously haven't fully read or fully understood the nasty nasty contract clauses they have waiting for you.

I'm convinced the Bank's solicitors writing this stuff get together every Friday lunch time and have a jolly good chinwag about ways in which to screw their customers to the wall.

"Really ?? We don't have that clause in ours. Thanks, I'll pop that one in on Monday. Yep, no worries, I'll be sure to bury it 2/3rds of the way down on page 136. Our statistics show most people fall asleep and switch off after about page 7. Thanks for the tip. See you next Friday - same place ??"​

Good luck with that MPmelb.


BTW - I think your puerile label of "apathetic" is pathetic.

 

[mary&mat]

I think MPmelb is close to the mark with calling most people apathetic when it comes to switching loans.

I think however that apathetic implies people don't care. I think they do care when it's time to pay the mortgage, but they just don't want to do the leg work trying to find a better deal.

I approached a credit union a couple of months ago. I asked for rates & what discounts were available if my borrowings were over 'x' amount. They stated there were no discounts regardless of whether my borrowings were $50million or $500K. It really didn't seem they were that eager to try to win my business.

So for those of us who aren't apathetic & are shopping around, there doesn't seem to be a great deal of difference in lenders' offerings. What to do when there is little competition in the industry?

 

[Mr. Fabulous]

What to do when there is little competition in the industry?

Talk to a broker.

 

[Dazz]

It really didn't seem they were that eager to try to win my business.

When one party to the contract is obviously the larger and stronger party, they rarely come across to the weaker party to the contract as being "eager and keen".

Big 4 Bank vs individual, or credit union vs individual.

Elephant vs ant, or horse vs ant.

Whichever one the ant chooses to dance with, they need to be careful.

One wrong move, and the ant is squished either way.

 

[mary&mat]

Talk to a broker.

Thanks Mark,

We have one but i was just doing a bit of my own independent research

Dazz, are there any ways you have found to equalise your footing with the banks (other than purchasing one yourself )?

eg crossing out things in the loan contract?

Or is it just that old axiom that the more you have the more willing they are to throw money at you with better rates?

 

[willair]

It is now time for apathetic customers to stop getting ripped off by the Big 4 banks.

Stop being apathetic, get a better deal and teach these bankers a good lesson. Let the customers voice be heard, start heading thru the exit doors people.

Look at it from the shareholders side of things,and the vast numbers of people they employ,in every area that are all linked in some way or another,myself as a unit holder in most banks i don't give a stuff i just walk up the letter box 4 times a year pick up the div's and all the drama that happen in between is not my problem,it's always been a 2 way street in the banking game,and if you walk across any street blindfoled the same thing will happen each time..

 

[Marty McDonald]

eg crossing out things in the loan contract?

Unfortunately any crossing out in the loan contract will null and void it and the lender would then require a new set of documents be issued and signed again. Really can you imagine CBA et all allowing customers to negotiate the terms of their contracts...get of the grass!!

Nab, Suncorp, Adelaide Bank, CUA (even though they dont use brokers the buggers), Newcastle Permanenet Building Society...i'd start there.

 

[Dazz]

Dazz, are there any ways you have found to equalise your footing with the banks (other than purchasing one yourself )?

eg crossing out things in the loan contract?

In my 15 years, I've been successful only twice in changing the clause wording. Both involved CBA's "all monies" clause.


In hindsight though, it wasn't worth it. It took 4 months of arguing back and forth with the Bank's solicitors before they agreed to modify the wording. In that time, the market was heading up and by the time I executed the contract, the Bank Bill rate floated up 42 basis points. The Bank's margin stayed the same, but this was back in late '07 when there just happened to be a spike that I didn't know was coming.


I would have been much better off to have been apathetic, not read the fine print and just locked it in straight away with the existing all monies clause and paid 42 basis points lower interest rate.


Nowadays I've learnt to relax a little more, hand it all over to a broker and he shuffles me onto whichever Lender is going to stick me with a higher rate so they can pay him the biggest trailing commish. Too easy.

 

[mary&mat]

In my 15 years, I've been successful only twice in changing the clause wording. Both involved CBA's "all monies" clause.


In hindsight though, it wasn't worth it. It took 4 months of arguing back and forth with the Bank's solicitors before they agreed to modify the wording. In that time, the market was heading up and by the time I executed the contract, the Bank Bill rate floated up 42 basis points. The Bank's margin stayed the same, but this was back in late '07 when there just happened to be a spike that I didn't know was coming.


I would have been much better off to have been apathetic, not read the fine print and just locked it in straight away with the existing all monies clause and paid 42 basis points lower interest rate.


Nowadays I've learnt to relax a little more, hand it all over to a broker and he shuffles me onto whichever Lender is going to stick me with a higher rate so they can pay him the biggest trailing commish. Too easy.

Thanks Dazz, appreciate your treasure-trove of insights & experiences. I guess some battles are worth fighting & others, well, I'm better just to 'suck it up' & get on with things

 

[vbplease]

for a while i've been promoting mecu's first home buyer's loan.. apart from their competitive interest rates and other low cost features, it's quite refreshing to speak to a friendly voice within a few seconds of dialling their number, instead of a machine.. it's definitely a big plus for me.

also their interest only investment loans. Have a look at their website for their features.. unfortunately they don't deal with mortgage brokers.

 

[csc2]

for a while i've been promoting mecu's first home buyers loan.. apart from their competitive interest rates and other low cost features, it's quite refreshing to speak to a friendly voice within a few seconds of dialling their number, instead of a machine.. it's definitely a big plus for me.

also there interest only investment loans. Have a look at their website for their features.. unfortunately they don't deal with mortgage brokers.

havnt heard of thos business but thanks for the info..

i think my mentality when borrowing is: its way easy to walk into my local bank branch, have a quick chat and walk out knowing i will get a loan easily and having been with them for so long i am able to obtain a reasonable hastle free rate without establishment fees and all the other extras banks try on punters...

now with the company you mentioned, things would be done via the phone...sort of loses the personal touch plus they have fees for every occasion...

id like to see the "green" loan with the actual real rate offered inc the fees and charges...

ill keep them in mind but for the sake of a few bucks a month i like the personal in person touch where i can watch the body language of people im dealing with...

I have actually taken out a mortgage on a property two mths ago but havnt drawn on it as yet...just waiting to see what the Westpac do esopecially after their 89% plus profit increase.....

If they go above the RBA rate ill flick them along with my savings, my wifes savings and my childrens savings in an instant.....

 

[quoll]

Would love to move banks

But no one wants our business. Once we moved out of Resi banking into Business banking it was the start of NO and here's a fee.

Current climates it's pretty difficult to refinance business loans. Which are screwing up the refinance of the resi property loans. All we can do is put the business on the market, sell it cheap and get rid of the business loan.

Stay away from business banking if you want to be able to move banks easily.

Cheers
Graeme

 

[vbplease]

now with the company you mentioned, things would be done via the phone...sort of loses the personal touch plus they have fees for every occasion...

It's true they only have branches in the capital cities (outside vic).
I see where you're coming from, but having dealt with mecu, I'd be just as happy to deal with them over the phone (you're in touch within seconds) as being face to face with one of the big 4 in a regional area .

 

[oracle]

myself as a unit holder in most banks i don't give a stuff i just walk up the letter box 4 times a year pick up the div's and all the drama that happen in between is not my problem,

I am too lazy to even to do that. So I get my dividends electronically deposited into my bank accounts. On dividend pay date I login into my internet banking and make sure the payment is made. Surprisingly, unlike my tenants the companies always pay on time.

Cheers,
Oracle.

 

[RickF]

The only way banks would not raise % rates above what the RBA does would be if all their stakeholders let them know that due to the sleep at night factor and over-riding feelings of guilt they no longer want the customers hit with extra rises. This of course would be at the cost of their dividends and would defeat the purpose of the investment which would then cause a lack of sleep at night factor and over-riding feelings of anxiety caused by lack of ROI.

 

[Spectre]

But no one wants our business. Once we moved out of Resi banking into Business banking it was the start of NO and here's a fee.

Current climates it's pretty difficult to refinance business loans. Which are screwing up the refinance of the resi property loans. All we can do is put the business on the market, sell it cheap and get rid of the business loan.

Stay away from business banking if you want to be able to move banks easily.

Cheers
Graeme

Actually - this depends on the borrower and the deal. If the business/commercial lends are residentially secured and full doc then theres lenders back in the marketplace who'll lend 80% LVR and around 6.81% 'old' rate to refi the commercial.

If commercial secured or supporting no dice.