Bank of Sydney and Others for Home Loans with Bad Experience

PixelPaul on 17/10/2022 - 16:46

Hi All,
I have been with Bank of Sydney for a few years now. Every time a rate cut is made, and they adjust their advertised rates. They NEVER pass them onto existing customers, and getting them to adjust your rate to the advertised rate is a HUGE hassle. They keep saying they can't and will give any random reason why, but they can and if your VERY luck they will.
Then when the RBA rates started to go up, they are VERY quick to increase your rates, and they increase to be above their advertised rates.

Is this normal for every bank? From what i can see, some are like this. But some like to keep their customers happy and loyal and actually adjust rates on home loans to be the same as their advertised rate.
The whole, introductory rate, seem very dodgy and a quick way to lose your customers.

Can anyone recommend a bank that is good with rates, passing them onto customers and giving advertised rates without jumping through hoops?

Financial Home Loan

Related Stores

Bank of Sydney
Bank of Sydney

Comments

  • tsunamisurfer on 17/10/2022 - 16:54

    Most banks will pass the rates increases and decreases to their borrowers.

    If your bank does not do it upon a drop, vote with your feet.

    • PixelPaul on 17/10/2022 - 16:58

      do you have any recommendations?

      • tsunamisurfer on 17/10/2022 - 17:10

        do you have any recommendations?

        I don't have any personally but go look in the financial deals section of Ozbargain there will be many there.

        Banks don't have to pass on the rate drops to you but if they keep doing that, clients will move to a better deal now that most exit fees are removed.

  • localhost on 17/10/2022 - 17:07
    +2

    Just shop around - many banks offer $4000 bonus for moving.

  • holdenmg on 17/10/2022 - 17:08

    Look at https://www.athena.com.au/

    Automatic rate match
    Existing customers on variable rates score the same sexy new customer rates on our like-for-like loans¹. An Aussie First.

    1 A like-for-like loan means the product name (eg. Owner P&I Var) and LVR tier (eg. Liberate, Evaporate, Celebrate) advertised to new customers must be the same product name and the same LVR tier that you have as an existing customer. Applies to variable loans only. The way we construct and name products may include a combination of the loan’s purpose (eg. Owner Occupier, Investor), repayment type (eg. P&I, IO), loan type (eg. Variable), borrower type, different features or specific qualification criteria. None of these criteria will be designed to favour new customers over existing customers. If we ever tempt new customers with a lower rate for our like-for-like loan, anyone who’s on it will get the automatic rate-match. Sweet. It’s an Aussie first!

  • GordonD on 17/10/2022 - 17:45

    Haven't had a home loan for a very long time, but isn't what the OP is complaining about the difference between a fixed rate loan and a variable rate loan? Choose a fixed rate loan and you are betting that rates will go up. Choose a variable rate loan and you are betting that they'll go down. With the bank offering rates based on their bet as to which direction they think rates will go.

    • El-Rhi on 17/10/2022 - 18:05
      +3

      No, OP is talking about the loyalty tax where new customers get better rates than existing customers

  • clover on 23/10/2022 - 13:47

    I was with them a few years ago when their rates was still competitive. But the first time they did what you described above, i just moved to another bank with cashback offers. Their online banking system is rubbish anyway.

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