Question:
Hi. My wife and I are first time home buyers. We got a loan with a bank that we don't bank with. My question is do I need to change my bank? What would be your advice?
Answer:
Our home loan expert answers our readers question:
Hi Desmond,
It depends on what your financial needs are.
The exposure you have to one particular bank will allow you to develop a relationship with this bank, and give you greater access to their product offerings in the future.
Additionally, the ease of transferring funds, especially additional payments to the bond are both quicker and cheaper if your transactional bank accounts is with the same institution as your bond.
Should you decide to apply for an access bond in the future, you will need to have an account linked to your home loan anyways.
However, this choice is also down to personal preference.
The service you receive from your existing bank may be better than that you may receive from a different institutions and the costs may also differ.
So an understanding of what your banking requirements are and what the costs are also important.
Each bank also offers value added products, for e.g., smart devices, access to certain facilities (e.g. airport lounges etc.), rewards programmes with participating retailers etc., for choosing particular accounts, so this also needs to be taken into consideration.
Unfortunately, there is no easy answer.
But, should you at any stage want to move your accounts (including your bond) to a different institution, for any reason, you are always able to do so provided you have good financial standing.