Borrowers warned: banks are getting sneaky

by Caroline Dann08 Aug 2012

 

A leading financial comparison site is urguing borrowers to beware "desperate banks" that will employ tactics to encourage spending, not saving.

Spokesperson Michelle Hutchison said the past two rate cuts were "a blow to lenders, which are already experiencing a tougher home loan market."

"Some lenders are getting desperate and we've noticed new tactics they are using which are encouraging borrowers to spend their money rather than save on their home loan."

"For instance, some borrowers with savings sitting in their home loan are being told they can absorb their savings by paying smaller than the minimum home loan repayments," she said.

She said yesterday's decision to keep the rate unchanged wouldn't deter banks from finding ways to recoup losses from previous cuts.

Related news:

RBA keeps rates on hold again

COMMENTS

  • by Loz 8/08/2012 10:16:49 AM

    Ummm...how do borrowers avoid paying les than basic repayments...they will save a heap of money soon enough when the bank re-possess their house cause they wont have a home loan anymore!

  • by Brisbane Borker 8/08/2012 11:53:05 AM

    If that is true, where is ASIC now.

  • by ozboy 8/08/2012 12:50:56 PM

    What do you mean "ARE"?