Bendigo Bank home loan customers are the most satisfied with their bank, followed by ING, Macquarie and Suncorp
Source: Roy Morgan Single Source Australia, Oct 2020 – Mar 2021, n=37,403, Oct 2021 – Mar 2022, n=43,201. Base: Australians aged 14+. *The ten banks reported have a minimum sample size of at least 90 for the periods reported.
The other five major banks followed closely with customer satisfaction ratings among mortgage customers at 89.6% for ING, 86.4% for Macquarie, 86.2% for Suncorp and 84.6% for Bankwest. Of these, the biggest improvers were Macquarie, up 7.8% from a year ago and Suncorp, up 3.2%.
The latest data covers the six months to March 2022 and overall home loan customer satisfaction across the top 12 Australian banks was 78.6% over that period. This represents a decrease of 1 percentage point from a year ago (six months to March 2021), which included a period when significant financial support was still available to hundreds of thousands of customers from real estate loans in the form of deferred loans.
Mid-2020 nearly 450,0001 home loans were postponed as customers affected by the COVID-19 pandemic took an initial payment break. Over the following months, these mortgage debtors resumed home loan repayments and by early 2021, more than 95% of these home loans had resumed repayments.
In March 2022, the CBA again had the highest customer satisfaction with home loans among the big four banks, with a rating of 77.8%. The average home loan customer satisfaction with the Big Four Banks as a group was 76.2%.
Satisfaction note from the mortgage bank’s customers: March 2021 cf. March 2022
Source: Roy Morgan Single Source Australia, Oct 2020 – Mar 2021, n=37,403, Oct 2021 – Mar 2022, n=43,201. Base: Australians aged 14 and over. *The ten banks reported have a minimum sample size of at least 90 for the periods reported.
1 Australian Banking Association: https://www.ausbanking.org.au/one-year-on-banks-ready-to-support-customers-as-more-resume-repayments/
Michele Levine, CEO of Roy Morgan, said Bendigo Bank has been the top performer over the past year with an increase in customer satisfaction with home loans to 91.2%, making it the fifth most Australia’s largest retail bank the advantage over its rivals:
“Home loan customer satisfaction for the 12 major Australian banks was 78.6% in March 2022, down slightly from a year ago in March 2021 (79.6%) but still up significantly from compared to February 2020 (74.8%) – the month before Australia entered a national lockdown at the start of the pandemic.
“The high rate of customer satisfaction with home loans over the past two years and the worst public health crisis in more than a century illustrate the importance of banks’ response to support borrowers facing sudden loss. income due to nationwide restrictions.
“Financial support provided by the Government, along with ‘mortgage holidays’ provided to borrowers facing financial difficulties by banks and financial firms, has helped to maintain the strong performance of the Australian economy and supported the housing market. during this crucial time.
“The latest ranking of customer satisfaction with home loans shows that Bendigo Bank emerged from the two years of the pandemic with the highest – and rising – customer satisfaction with home loans at 91.2%, an increase of 1.3% compared to a year ago. Other banks to see an increase in customer satisfaction are Macquarie in third place with 86.4%, up 7.6% from a year ago and Suncorp with 86.2%, up 3.2% compared to March 2021.
“There were several other banks with very impressive customer satisfaction ratings for home loans, including ING at 89.6%, Bankwest at 84.6%, St. George at 80.5% and Commonwealth Bank at 77, 8% – the highest rating from any of the “big four” banks.
“As we move further into 2022, new challenges are facing those with home loans and their banking and financial institutions – rising inflation and rising interest rates.
“This week the RBA raised official interest rates from 0.25% to 0.35% – the first time the RBA has raised the cash rate in over a decade since November 2010. Many debtors Today’s mortgages have never seen a cycle of increasing interest rates and the increase in payments they face will be a new experience for many.
“The last The ABS CPI (Consumer Price Index) figure for the 12 months to March 2022 showed Australian inflation hit a 20-year high of 5.1% – and it is expected to continue to rise over the next few months. The expectation of higher inflation ahead means the RBA is set to make a series of interest rate hikes through the rest of 2022 and mortgage payments will rise each month, the RBA is adjusting the official cash rate on the rise.
“The last time the RBA raised interest rates was over a one-year period from October 2009 to November 2010, following the global financial crisis of 2008-09. The RBA raised seven times interest rates from an “emergency low” of the GFC of 3%, and a total of 1.75%, to a high of 4.75%.
“If the RBA raises interest rates by a similar amount over the next year, CoreLogic2 estimates that the average monthly cost of a loan for a new borrower who owns an average-priced home will increase by almost $670 per month – reaching around $720 per month for someone in Melbourne and just over 1 $000 a month for someone in Sydney – Australia’s most expensive housing market.
“The prospect of high inflation, rising interest rates and increased mortgage repayments for millions of Australians over the next year is a new challenge for many, but presents also new opportunities for banks and financial institutions to attract customers who might be unhappy with their current mortgagee and looking for an alternative.
These latest bank satisfaction ratings come from the Roy Morgan Single Source Survey, derived from in-depth interviews with over 60,000 Australians each year.
2 CoreLogic: How much could mortgage repayments increase for a new homeowner borrower? https://www.corelogic.com.au/news-research/news/2022/higher-interest-rates-likely-to-add-further-downwards-pressure-on-housing-growth-rates
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