Why do banks offer a better deal for new customers?

You've been with the same bank for years. You've made your payments on time. You've always been in credit. You've done everything right. So why then do the banks charge you a higher rate than a new customer?

Because they can.

And while it may feel unfair (which in truth it is) unless you do something about it, you'll continue to be charged a higher rate than a new customer to the bank who hasn't earned their stripes like you have.

Until you really think about it, many people just let their banking including their home loans drift along sometimes for years and years. Riding the downs (when rates drop) and begrudgingly enduring the ups (when rates rise).

Sometimes it might occur to you to ring your bank to tell them you aren't happy. And when you do, who knows what you will be met with. In my recent experience, it was a nonchalant shrug down the phone line as the client angrily told them they would leave.

And you know what? It didn't matter. Until that same bank got the discharge notice that the client was leaving - with all $1.1m of the customer's loans. Only then was this particular lender willing to negotiate.. As this customer who is now a client told me, she felt insulted that they were even trying after the fact.

Loyalty does not mean anything. You'll never have a bank ring you after having reviewed your rate on your behalf and tell you that you can do better - and hey, we'll help you do it. It just doesn't happen.

So what you can do? My answer? Care about it. Enough to do something about it. Enough to send a broker a message to help you. Enough to ask your friends if they know anyone who can help you. Enough to go through the paperwork (and yes there will be paperwork), knowing that you are not going to put up with being treated as second best. Enough to know that your broker will ensure you will be in a much better place then you are in right now. And you won't put up with being treated as second best anymore.

The choice is yours. I encourage you to grasp it with both hands. Today.