Despite the high levels of national household debt, sobering new research from UBank, a subsidiary of National Australia Bank, has found that 85% of Australians don’t know their home loan rate.
For the second year, UBank released its UBank Know Your Numbers Index, which aims to understand how Aussies are tracking their finances. This year’s report reveals a slight rise in the number of borrowers who’re unaware of their exact home loan rate, up from 84% in 2016.
Of the respondents who didn’t know their home loan rate, 44% could only recall an approximate figure, while the remainder (41%) didn’t know their rate at all.
“Actively monitoring and seeking the best rate should be a priority for home owners as there are some great benefits on offer. 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,” said Lee Hatton, chief executive officer of UBank.
“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,” she said.
UBank’s research also revealed that many Aussies are feeling financially strained. Fifty-four percent of respondents admitted that their financial situation was causing worry and stress, and 33% said they constantly worried about the future.
“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,” Hatton said.
Thirty-five percent of respondents acknowledged that they had “a lot of debt”. However, they also said they were aware refinancing could help their situation.
“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.”
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan