One Big Switch disputes success rate

by Adam Smith02 Nov 2011

One Big Switch has disputed media reports that only 1,000 of the 40,000 borrowers the campaign signed up have seen results from their involvement.

The campaign to leverage group buying power to secure better mortgage rates saw massive consumer interest, but media reports have claimed One Big Switch has only seen 1,000 borrowers offered refinancing deals, a 2.5% success rate. The initiative’s co-founder, Paul Hunyor, disputed the figure.

“I’ve learned to believe nothing I read in the financial press, so no, those numbers are not quite right,” he told the LIXI conference in Sydney.

Hunyor claimed the number of borrowers seeing potential success refinancing their home loans is double the amount claimed by media sources.

“We’ve had over a couple of thousand introductions to lenders and their products through the program,” Hunyor said.

While this still represents only a 5% success rate, Hunyor claimed the process was ongoing. He said lenders were dealing with the influx of borrowers as quickly as possible.

“Given the current climate and the type of lenders they are – all non-bank lenders – and given their capacity to cope with volume, they pretty much have as much volume as they can cope with right now. I think there’s been great take-up,” he commented.

Moreover, Hunyor said “member engagement” in the campaign had been strong. He claimed many borrowers involved in the campaign had learned to “shop around” independently and re-engage with their current lenders for a better deal.

“The ultimate statistics on engagement we look to are quite large. That’s why we continue to find and look for and search for other ways to serve the demand from our members to get more products and services through the program,” he said.

Related stories:

AFG warns against 'laughable' One Big Switch

Big Switch, as Choice leads passed to brokers

Controversial switching campaign won't hurt brokers: Resimac


  • by Ozboy 2/11/2011 9:42:59 AM

    So 5% introduced, how many settled? Lenders finding it hard to handle volumes would also indicate that the final settlement figure could even be lower. Not sure if that would be a break even proposition. Funny haven't heard much from Choice lately.