My personal experience with the refinancing of a couple of investment loans gave me a better understanding of why borrowers often ' too hard ' basket.
BY EYNAS BRODY
There has been much talk recently about borrowers ' big four ' fleeing banks chase the better deal elsewhere, especially since all four connectors up interest rates over the Reserve Bank of Australia in November.
With each of them profit reporting billion this year, it's little wonder consumers saw red.
Of course the media was a field day with it, running story after story about how the borrowers had enough and were likely to punish the banks, taking their business elsewhere.
Although both by Government and consumers busy Bank bashing, smaller lenders (i.e., building societies, credit unions and servicing) is capitalized at transparency, using the opportunity to strengthen your message that customer service is still the number one focus.
Even though costly exit taxes prevented many borrowers refinance (question that had been considered since the Federal Government for loans from 1 July 2011), was definitely a public perception that hundreds if not thousands users reset their bank is better than others. But I have to wonder how much really.
You see, I was one of those who made the consumers who chose to vote with my feet, hold my bank account, put my money where my mouth is all those things, and empowerment. But I must tell you a few months later, has not yet completed the transition from one bank to another.
Let me back up a bit ... our first step at the beginning of the process was to challenge our lender to match rate competitor. It's always worked in the past, but not this time – even after years of loyalty to the schematic particular creditor. So the paperwork started to release two of our investment loans from the creditor for refinancing elsewhere.
Let me tell you, if you exit fees, what's stopping you, documents can be! We have forgotten how many forms have to be met for new credit, not to mention two, and the amount of detail and historical information that is needed! For a couple of busy workers was a hassle, and thought about finding a good mortgage broker is equally as long. However, after several meetings, phone calls and emails, we got there, finally.
Then we waited. And waited. And waited. Eventually we got the following package of forms to be signed. With the directions of the Bank, we adopted them, with appropriate identification to judge (JP) in the presence. (JP at a time that suits both of us had to find a mission in itself.) The Bank was unable to tell us – and perhaps we should have realized – was that JP will require proof of ownership title with the reference number for each property that is attached to each loan. (Deep breath)
We made a quick dash in the nearest Internet Cafe (JP only available for another 40 minutes) to conduct the search name in network properties. And what do you know? The Bank attaches number wrong lot (one belonging to our home!) one of the loans.
So we return to waiting for the correct amount of documentation to be issued before you can schedule another visit JP.
And that, dear readers, why it doesn't surprise me hear mortgage holders so often say "I know I have to switch banks, but it's too hard".
It would be great if the Government can do something about it!
Eynas Brody is the editor of the Australian magazine, an investor in property
www.apimagazine.com.au
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