An AI tool is helping mortgage brokers get better rates for their customers by making sure they aren’t getting hit by the “loyalty tax”.
It’s well known that some lenders charge existing customers a different rate to their new customers – that difference is called the loyalty tax.
This tax may be at its lowest right now but it’s far from gone.
The Sherlok Loyalty Index benchmarks and ranks lenders on the loyalty tax they charge existing home loan customers compared to new customers.
ANZ, NAB and CBA have all made reductions to some of their variable rate home loans but not for existing customers.
9News Money Editor Effie Zahos has revealed which banks have the lowest loyalty tax and what is considered a good interest rate on your home loan.
Watch the video in the player above to see the whole story.
