Nearly one third of Australian homeowners suffered from mortgage stress, according to data from Digital Finance Analytics (DFA), which prompted online home loan provider, finder.com.au (Finder), to hold a flash sale which could save borrowers up to $125,000 over a 30 year period.
The data also showed that 51,000 Australian households were at risk of defaulting on their mortgage over their next 12 months.
Money expert at finder.com.au. Bessie Hassan, said Australian borrowers would have access to competitive home loan offers with the lowest rates on the market over the 72-hour online savings event.
“We know that home loan rates should have a ‘3’ in front of them, but we’re setting a new benchmark – in today’s market, you should be paying less than 3.5%,” she said. “The savings speak for themselves.”
Switching home loan providers during the sale could see Australians take advantage of interest rates as low as 3.44 per cent, down from 4.95 per cent, which would reduce monthly repayments from $2,099 to $1,753, based on the average Australian home loan.
This equated to a potential saving of around $125,000 over a 30-year home loan, which, for Sydneysiders who were subject to a greater median house price, could mean a saving of $250,000.
“Don’t pay the ultimate price for complacency,” said Hassan. “A home loan is usually the biggest expense you’ll face during your lifetime so get on the front foot and snap up a better deal.”