"Australian banks are backed up by the government so your money...

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pintohoo

80,818 Posts.

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02/06/19

11:33

Post #: 38866222
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Originally posted by Justis ↑

Australian banks are backed up by the government so your money is safe.

It's typical of banks not to reward existing loyal customers but they made more effort when regulations came in to make switching lender simpler.

I had a equity loan facility with Westpac for many years, the value of the property had increased substantially and I need to increase my limit. Westpac knocked back my request, so started to shop around and seems this smaller bank/building society had links to Westpac as not long after speaking to them I got a call from Westpac saying they had a change of heart and would approve the increase in my limit.

More recently (two years ago) I applied for another increase, probably should not have told them it was to buy out my business partner as that complicated it. But anyway got knocked back, like wise ANZ knocked me back. Ended up getting help from a finance broker and got a loan from a non-bank lender, higher interest rate but interest is mostly tax deductible and it allows me to park excess funds from the business in the loan and redraw when required.

Was not long after that Westpac and ANZ were calling me saying they want my business, told them I was locked in for two years and now the 2 years are nearly up they have been in touch and I have appointments next week and week after. They will have to offer a good deal as while I pay a higher interest rate the facility I have works fine

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"Australian banks are backed up by the government so your money is safe."

There's a presumption there that the Australian government is safe AND can be trusted

if you look at the changes to Superannuation and pensions at their whim

I have no idea why any sane person would have such a trustworthy assumption of government -- no matter which mob are in power

that's a hell of an assumption
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