A recent study has revealed that while Australians’ financial literacy concerning their home loan rates is on the rise, a large portion of borrowers still require assistance when it comes to refinancing their mortgages.
According to UBank’s Know Your Numbers Index, a significant 25% of Australians accurately know what their mortgage rate is as compared to just 15% who claimed the same in 2017.
Of those surveyed, 64% were at least aware of the approximate figure of their home loan rate, leaving just 11% without any level of knowledge.
“While there was an improvement on last year, there are still too many Aussies out there who don’t know their mortgage rate,” said Lee Hatton, CEO of UBank.
“We encourage people to do their research and stay on top of their mortgage rate, as thousands of dollars can be saved by simply understanding where the best offers are and refinancing.”
Just 40% of those surveyed indicated they actively look for the most competitive rates on the market, while 31% communicated they hadn’t pursued refinancing their loan in any capacity.
Home owners paying 3.58% on a 30-year $400,000 home loan could save nearly $40,000 over the same period on a lower rate, such as UBank's variable rate of 3.09%.