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Banks favour borrowers with bigger mortgages, spokesgroup claims

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Australian Broker | 11 Jun 2013, 07:00 AM Agree 0
An online comparison site is claiming lenders offer better rates to clients borrowing larger sums
  • Carcass | 11 Jun 2013, 10:00 AM Agree 0
    What is strange about this article is that it is being classed as "news". There is nothing new about the banks offering larger discounts to bigger loans. This is just someone trying to get their name in the media.
  • Country Broker | 11 Jun 2013, 10:05 AM Agree 0
    This has always been the same except for some of the majors nothing new in this , its the market .
  • Mike Clarke | 11 Jun 2013, 10:36 AM Agree 0
    Definately not new information but an important point to therefore stress is that for borrowers with smaller borrowing needs, make sure we as brokers explain this & show the benefits of some of the so called 2nd tier lender's basic products. There really is some great options out there for these borrowers as far as reduced interest / fee costs & still with some good 'bells & whistles'.
  • Chris C | 11 Jun 2013, 11:05 AM Agree 0
    Absolutely nothing new here and really why shouldn't they anyway. Most businesses have a preferred client policy on volume and pricing and if I had a big home loan = higher profit to Lender, I'd be expecting a better than normal rate too but where I think it really goes against the grain is where some Lenders charge higher margins for higher LV loans >80% with LMI. Rate for risk fair enough but when the Lender has mitigated their security position (LVR) with LMI, the borrower should not be further penalised with a higher rate - its called double dipping. I know we have alternative lenders in these cases but this regime of pricing really should be eliminated from the industry.
  • Melbourne Broker | 11 Jun 2013, 11:31 AM Agree 0
    If RatesCity think this is new news then they clearly don't understand the market they are operating in.
  • NoTimeLikeTheFuture | 11 Jun 2013, 11:54 AM Agree 0
    In other news: Brokers might favour borrowers with large mortgages too.
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