It appears that competition between the top four banks is at levels not seen for years.
NAB began the battle with its ‘break-up’ campaign, targeting its rivals’ mortgage customers by announcing that they would pay the $700 mortgage exit fees for customers who moved their home loan to the bank from the Commonwealth Bank or Westpac, as well as waive their normal $600 application fee.
Within a week the CBA retaliated by offering to pay NAB customers $1,200 in direct cash if they switch their mortgage to CBA, as well as $100 for each credit card and transaction account. Not to be left out of the action Westpac announced a range of cuts to their rates and fees and launched an aggressive campaign to poach business customers from rival banks.
overall deal for your situation.
Deals like these sound good on the surface but you need to look a bit deeper to get an understanding of the underlying interest rate and total loan costs. After all what’s the point of scoring a few hundred dollars in upfront cash if your loan ends up costing you tens of thousands more in extra interest payments.
Perhaps the big banks should focus on keeping their current customers happy rather than trying to ‘buy’ more of them. They’d only have to visit a couple of forums or read a few news article comments to get a feel for how cynical bank customers have become – here’s a good one I came across; “So if you are a CBA mortgage customer, perhaps you can have NAB pay your exit fee, move to NAB, then get CBA to pay you $1200 to come back?”
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