We’ve lowered our variable rates for new customers. Here’s why (and how we want to be different).
You may have heard about some of the nasty revelations from the Banking Royal Commission. The Big Four have been behaving irresponsibly and dishonestly, just because they can.
One example of bad banking practice, is how the major banks place more importance on bringing in new business, than looking after their loyal customers. So, they hike rates for their existing customers, to pay for rate discounts they can offer to new ones. And they know this strategy works, because they’ve made the process of refinancing so painful; you’d rather stay with them (unaware your interest rates have jumped), than have to go through the nightmare of switching home loans.
There is no transparency in how home loans are priced. Loyalty is not rewarded. And Australians are not being given the right tools to own their own home loan.
We spent weeks working with our funder to take a step in the right direction towards fair pricing. And while we couldn't get the same reduction in our variable rate (for our variable live-in P&I customers), we were able to match it with a fixed rate, to provide the same saving with the added security against interest rate rises during that two year fixed period.
Perhaps even more importantly, we’ve been 100% open about the changes in our rates – because unlike the Big Four, we don’t want to hide anything.
It’s not exactly what we wanted. But it’s a step in the right direction.
At Tic:Toc, we promise to always treat our customers fairly and with respect. And with complete transparency.
Here’s to changing the status quo.