Symond ‘worried’ customers clueless over rates

by Caroline Dann04 Jul 2012

Aussie’s John Symond is concerned about fresh data showing a third of Australians don’t know their own interest rates.

The results of the Aussie-backed survey also suggested a third of investors were just as clueless over interest rates on mortgages.
The survey found 32.8% of home owners and 29.5% of investors surveyed were unable to guess the percentage.
“"This statistic is really worrying… people need to be constantly questioning their rate. It could be just by speaking to their broker about a simple mortgage health check to see how much they could save," Symond said.
Of those who did know their rates, almost a quarter were paying “too much” according to the survey, with 23.5% of homeowners and 23.2% of property investors paying more than 7.0%. 
"When you consider the savings between 7% and 6% on a home loan of $300k is around $197 per month, and take that over the life of your loan, that is about six years and eight months cut from the loan term and several thousand dollars saved in repayments,"Symond said.
"I urge all borrowers to be more attentive to their home loan rate."


  • by Gary Perth 4/07/2012 10:38:17 AM

    I am amazed that the percentage isn't lower, most consumers think that once the loan is in place their duty is done. Most never return to look at the percentage as they have more important things in life to worry about, like paying off the credit card, interest free term on that TV coming to an end Etc. That is why this industry needs to stand up and be proud of what it does, at least we know that the client has been place into a loan that will in the long term benefit them and their family. I would like to see the difference between lender direct and broker clients on a similar survey.

  • by scopher 4/07/2012 11:17:41 AM

    It would be a sad obsession if you had to know exactly the interest rate on your home loan at any point in time as Symonds suggests. Better advice would be to make sure you get the right loan in the first place and work with a broker you will review your loan on a regular basis.

  • by KT 4/07/2012 12:57:47 PM

    Scopher...totally agree with you there. I can't be bothered reviewing my interest rate every month and comparing to other loan products. Geez....what's 0.5% here and there.....the Big 4 lenders keep changing position in terms of cheapest to dearest every RBA rate change anyway! day it is Westpac dearest, next cycle it is ANZ, next cycle it CBA and then next cycle its back to Westpac

    Why waste time constantly chasing the cheapest rate out there? Poor advice from John Symonds who is supposedly an expert on these things.

    Its better to get a good broker that structures your loan properly to ensure you can refinance and/or take out more equity when your circumstances suit (for e.g avoid cross-collateralising or selecting a honeymoon rate product without offset facility over a premium product that DOES have offset facility). When I see my broker he knows rates is not the main thing I look out for.....give me good structure advice instead of updating me on rate differentials!