When the product is money, the only thing you should be concerned about is the cost of borrowing that money, and the terms and conditions of that loan. If the terms and conditions of the loans are similar, choose the lower cost loan.
‘Big 4’ banks of Westpac, ANZ, NAB and the CBA are strong competitors with broad product ranges, so of course, you should turn to them if they have a solution that is suitable to your circumstances. However, you should feel just as good about choosing a second-tier bank or non-bank lender if their product, pricing, and services are better suited to you.
Ultimately the borrowing public is the winner due to a more competitive mortgage market. For borrowers, the biggest long-term negative effect of the Global Financial Crisis was that the ‘Big 4’ banks were allowed to buy up second-tier banks, which reduced competition in our industry and made smaller lenders all the more important.
A loan from a ‘Big 4’ bank may well be the best option for you. However, when choosing your next lender, please be open to other regulated credit providers you may not have heard of before if the loan they are offering is going to save you money; because, that is what really counts on your path to mortgage freedom.
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