Mr Magin says that with three of the big four banks, and a number of other lenders, putting up home loan rates by more than the official 0.25% increase this month, the gap between rates is widening, and people are throwing away their hard earned money.

He says the Greater’s standard variable rate is just 6.30%, 46 points below Westpac, 36 below ANZ, 11 below CBA, and 19 below NAB. The Greater’s lower fees means that, when the comparison rate is examined, the gap between the Greater and its major competitors widens.

“If a Westpac customer were to switch a $200,000 loan to the Greater they could save $60 a month or $21,800 over the life of a 30 year loan,” Mr Magin says.

200,000 loan over 30 years	Standard variable rate (%)	Comparison Rate (%)	Monthly Repayments	Extra interest paid over life of loan (compared to Greater)
Greater BS	6.30	6.30	$1,238	$0
Westpac	6.76	6.89	$1,298	$21,809
ANZ	6.66	6.76	$1,286	$17,031
CBA	6.61	6.74	$1,279	$14,650
NAB	6.49	6.62	$1,263	$8,955
IMB	6.45	6.50	$1,258	$7,064
Newcastle Permanent BS	6.37	6.40	$1,248	$3,290

“People will take the time to go to another store to save $10 on a pair of shoes or jeans yet they are reluctant to “shop around” on their biggest ever purchase, to save thousands,” he says. 

“Switching your mortgage will save much more money and be less painful than traditional New Year budget cutting-resolutions like giving up a coffee a week or taking lunch to work an extra day a week.”

Mr Magin also warns that while some lenders are offering packaged rates or discounts off their standard variable rates, people should check the fine print for conditions, time limits and fees.

 “The Greater’s standard variable rate Getaways Home Loan comes with other benefits like a free holiday. He also pointed out that the Greater offers a savings account free of Greater transaction fees, no upfront establishment fee, no monthly account keeping fees, as well as free  internet redraw, phone banking and internet banking.

He says switching can be as simple as filling in a form with one of his staff who will deal with the borrower’s current lender on their behalf.

The Greater is aggressively taking it up to the banks to fill the gap left by the closure or acquisition of a number of competitors. It has enlisted the help of US star Jerry Seinfeld to raise its profile.

“There are large, financially sound, mutual building societies and credit unions that can offer better rates, lower fees and far better service because they are set up to serve members, not shareholders.”

“It is only with more competitors and customers voting with their feet that we will break the bank’s increasing dominance and bring the cost of home lending down.”

With 66 branches in NSW and on the Gold Coast, the Greater is one of the largest Australian building societies. It is a top 500 private company (BRW) with assets of more than $4 billion.