Hard to believe they make BILLIONS of dollars this way?
Lets suppose the best current 5 year fixed rate that I have access to as a Mortgage broker Christchurch is 3.59% interest. (which it is the day I’m writing this). When your renewal documents arrive from your bank, they might be offering you a new 5 year term at 3.99% (which is not terrible, but certainly not the best). The bank knows that 75% of the people will sign those documents and send them back in. They know that most people are scared, lazy, or complacent to go shop around and see if the rate is decent. Why is that? Are consumers scared they may not qualify, scared that it might be too much paperwork, or just too busy to want to save THOUSANDS OF DOLLARS?