More Australians should increase their knowledge and actively seek the best home loan rates, with the majority unaware of their home loan rate, according to research from UBank.
The UBank Know Your Numbers Index, which looked to capture how Australians were tracking with their financial management, found 85 per cent were unaware of their home loan rate.
This was a slight increase from 2016, when 84 per cent were unaware of their home loan rate.
According to UBank’s chief executive, Lee Hatton, monitoring and actively seeking the best rate should be a priority for home owners.
“We are seeing some of the lowest home loan rates on record, so now is the perfect time to know your numbers and consider refinancing,” he said.
“Buying a home is one of the biggest investments of your life, so it’s really important that you find the right loan that suits your individual needs. Simply knowing your exact home loan rate and managing it closely could save you thousands of dollars a year.”
At the same time, the study found that 54 per cent of respondents felt financially strained with a further 33 per cent saying they were constantly worrying about their future.
Furthermore, more than 35 per cent of the surveyed respondents also admitted they “had a lot of debt” and that refinancing could help their financial situation.
However, according to UBank’s index, nearly one in four Australians thought that refinancing their mortgage to save money was a good idea but they needed to find the right competitive rate.
“This is a step in the right direction. It’s great that some Australians can see the benefits in refinancing a mortgage. It might seem like a huge task but really, it’s a simple process that can save people thousands each year,” Hatton said.
“Unfortunately, more and more Australians are making significant sacrifices due to being financially overstretched. The better acquainted you are with your numbers, the less stress and more money you’ll have in your back pocket. It’s important Australians borrow less and live more.”
UBank surveyed 1,021 Australians with a home loan and according to Hatton, home owners who were currently paying 4.24 per cent per annum on a 30-year $360,000 home loan could end up paying more than $37,000 more than they needed to.
