Critical lapse in Aussies’ understanding of mortgages

Font size :
The latest CUA National Mortgage Survey showed that almost half of the respondents gave the wrong answer when asked what a comparison rate is, while an additional 28% did not know what it was at all.

This has caused them to miss out on the best home loan deals.

According to news.com.au, a loan comparison rate is an important tool for people to compare lenders on an even playing field. It includes loan fees, charges, and interest rates.

Banks and other financial institutions are required to display comparison rates. However, people are still not taking advantage of the freely-given information.

“Property buyers need to be careful that what looks like a very low rate doesn’t actually have lots of nasty hidden fees and charges,” said Andy Rigg, CUA chief operating officer.

The survey further showed that people who have loans with the big four banks are less likely to know what a comparison rate is compared to those who have home loans outside the big four. However, these homeowners are twice as likely to have switched mortgage providers in the past six months compared to non-big customers.

“The current low interest rate environment is encouraging some homeowners to consider locking in these lower mortgage repayments for the next few years,” said Rigg.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Sep 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords