Westpac borrowers leaving in protest

Westpac mortgage customers are lining up to leave the bank and take their business elsewhere says Australia’s largest mortgage broking group AFG. A “large proportion” of AFG’s business in December 2009 was Westpac customers looking to switch to a cheaper mortgage elsewhere said AFG.

Westpac raised interest rates on its standard variable mortgage products by 0.20% above the Reserve Bank’s official rate change in early December 2009.

The number of Westpac customers looking to switch pushed refinancing to a 12 month high in December 2009 and caused Commonwealth Bank to displace Westpac as the number one lender according to AFG.

''There are people who are fed up with Westpac and are making a stance,'' said AFG sales manager Mark Hewitt.

''Normally people think it's not worth their while to move for 20 points because rates could change again, but in this case people are making a protest. It's hard to switch banks, but when you feel strongly about something you tend to endure a bit of pain to get your point across.”

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