MyRate.com.au stands up to Aussie Homes Loans to defend borrower choices
Leading direct lender MyRate.com.au is fighting for the rights of Australians borrowers against a stifling deal struck between GE Capital and Aussie Home Loans.
GE Money Home Lending Australia, which is exiting the mortgage market, said it would waive the deferred administration fee - the exit fee - only for those home loan borrowers wishing to refinance their home loans though Aussie.
In a complaint lodged to the ACCC Thursday morning, MyRate.com.au Managing Director Kevin Sherman disputed the arrangement, arguing that by keeping its interest rates high, GE Money are effectively encouraging their borrowers to refinance elsewhere however they are limiting customer choice and stifling healthy market competition.
“Aussie doesn’t represent every lender, and it is unfair to disadvantage GE Money’s borrowers for shopping around” he said. “Essentially, Aussie and GE Money are penalising borrowers if they choose not to use Aussie”.
Sherman explains that the real losers here are the everyday Australians who are battling to pay off their homes. “People are hurting badly in this country, and to survive these times, every Australian must be allowed to choose the deal that is best for them.
“We implore Australians to check out the deals that lenders like MyRate.com.au can offer, as you’ll find they can be around one percent cheaper than the big banks. Whether or not you take them, at least you’ve exercised your right to shop around”.
Loading ...
Bill Zenko March 13, 2009
Nothing wrong with a little healthy competition. That deal seems suspect, and the government should have stepped up immediately and not allow that deal to take place between GE and Aussie. I wonder what promises were made behind closed doors to allow this to happen. But I digress, the main point is the ACCC is now fully aware of this and should do something about it. Time will tell if they step up and do the right thing…
Speaking of healthy competition, just as with MyRate, we implore people that are stuck with GE and looking for a way out, along with the rest of Australians looking for better mortgage options, to check out MFAA Accredited Mortgage Brokers at RC Finance Solution. We are a small friendly company and cater to your individual needs and will work to strive to get you the best deal we can for your specific circumstances.