One of the findings of the lankmark 600 page report in the financial sector was that bank ownership of mortgage brokers like Aussie and RAMS increased conflicts and carried the obvious risk that consumers have an illusion of choice. Another thing to consider is mortgage brokers like Mortgage Choice who are listed on the stock exchange. The report also found that institutions listed on the stock exchange put the interests of their shareholders before their customers. So it begs the question: who owns my bank (or broker)?
An offset account is an incredibly powerful, and severely under-used, way to pay off your home loan faster. If you put your money in a savings account you'll not only earn very little interest but you will be taxed on that interest. Not fun. That's why more and more Australians are putting their money into an offset account. Not only does it save you interest off your home loan (effectively "earning" your home loan rate) but that saving is tax-free.
A lankmark 600 page report to be released one week before the royal commission into the finance sector has provided some damning findings. Among others, it found that "in return for their loyalty, customers have been ripe for exploitation" with one in two people still with their first ever bank and only one in three considering a refinance despite paying 0.40% more than new customers to the same bank!