Over my 23 years in the industry, working with thousands of Australians and analysing their financial positions, I’ve seen the same mistake happen over and over again—chasing the lowest interest rate.
It’s the easiest thing for banks to sell because it’s the easiest thing to understand: “Lower rate = better loan.” But that’s not the case.
Banks Are Not Your Friends
Banks don’t want you debt-free. They want you locked into repayments for as long as possible. They make billions every year by keeping Australians in debt, and their biggest marketing tool? Interest rates. In 2024 alone, Australia’s big four banks—Commonwealth Bank, Westpac, ANZ, and NAB—reported a combined profit of $29.9 billion.
They dangle lower rates in front of you, making you think you’re getting a better deal, but in reality, they’re trapping you in a never-ending cycle of debt. Every time you refinance for a lower rate, your loan resets. You had 27 years left? Now you’re back to 30. You’ve just handed the bank another three years of interest payments.
They disguise this trap by focusing on lower repayments while hiding the real cost—the total interest paid over time. More than 40% of Australians over 55 still carry mortgage debt into retirement, with the number tripling in the last 20 years.
Instead of enjoying their golden years, many are forced to keep working just to make repayments.
The Refinancing Scam
The average home loan in Australia is refinanced every three years. That means most people never actually get past the high-interest front-loaded years of their loan. You’re not saving money—you’re giving the bank exactly what they want.
If lower rates were the solution, why didn’t everyone pay off their homes when rates were at historic lows during COVID? Because the rate isn’t the issue—it’s how you use your money that counts. The banks structure loans to benefit them, not you.
How Banks Make You Pay More
Recent research shows that the big four banks collectively earn over $200,000 in profit from a typical 30-year home loan. In the first year alone, this amounts to approximately $9,130, or about $761 per month from homeowners’ payments.
How? Front-loading interest—most of your early repayments go toward interest, not reducing your principal. Banks ensure they collect the bulk of their profits in the first half of the loan term. Refinancing keeps you stuck in this phase, paying mostly interest while making little progress in reducing your debt.
Look at your loan contract. The Total Interest Cost shows how much you’ll actually pay. If you borrow $600,000, you’ll likely pay back over $1.2 million over 30 years. If you refinance multiple times, it’s even more. The average Australian homebuyer ends up paying 2.2 times the original loan amount due to interest.
Your repayments might feel lower, but in the first 15 years, most of what you pay is interest. That’s why the banks want you to refinance—they keep you locked into their profit cycle.
“It’s like going to McDonald’s and asking them for nutrition advice!”
Banks will offer you a lower rate, but they’d rather keep you paying them interest for as long as possible.
A Smarter Approach
In Crown Money program, we take a completely different approach to home loans. Instead of focusing on rates, we focus on strategy, structure, and smart money management to help you pay off your mortgage in record time.
Our system is built on Four Key Pillars:
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Equity Accelerator – We ensure every dollar is working for you, segmenting funds into the right buckets and optimizing your loan structure for faster debt reduction.
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Coaching & Education – We provide expert coaching so you fully understand your financial position and make informed decisions.
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Tracking & Measuring – We track every step of your mortgage journey, keeping you accountable and showing your progress in real-time.
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Accountability – We keep you motivated and on course, ensuring you stay committed to financial freedom.
Instead of chasing low rates, the real focus should be on paying off your loan faster. The numbers don’t lie—clients who follow our structure pay off their homes in an average of 12 years, cutting their total interest costs by more than 50% compared to a traditional 30-year loan.
It’s Not Your Fault—But It Is Your Problem
We were never taught this in school. No one explained how banks manipulate the system to keep us in debt. Why? Because everyone profits from your debt—except you.
But now that you know the truth, it’s time to stop playing their game. If you want to win, you have to do the exact opposite of what the banks want you to do. So when everyone else is chasing rates, maybe it’s time to zig while they zag.
