While most Aussies can remember their phone number (94%), their number plate (77%) and their parent’s phone number (76%), new research from UBank has revealed 85 per cent of Australians don’t know their home loan rate.
For the second year, UBank has released The UBank Know Your Numbers Index, which aims to understand how Aussies are tracking with their financial management. The 2017 report reveals a slight rise in people not knowing their exact home loan rate – up from 84 per cent in 2016.
Of those surveyed 44 per cent could only recall an approximate figure for their home loan rate while the remainder (41%) simply didn’t know their rate at all.
Lee Hatton, CEO of UBank said “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.”
“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.”
The research, conducted amongst 1,021 Australians with a home loan, also revealed Australian's are feeling financially strained, with 54 per cent admitting that their financial situation is causing worry and stress. While a further 33 per cent of Australians constantly worry about their future.
“Unfortunately, more and more Australians are making significant sacrifices due to being financially overstretched. 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,” Ms Hatton said.
The research also uncovered that over a third (35%) of Australians acknowledge they ‘have a lot of debt’, but they also admit to knowing that refinancing can help their financial situation, which Ms Hatton says is promising.
The UBank Know Your Numbers Index also discovered that nearly one in four (23%) think that refinancing a mortgage to save money is a good idea but are yet to find the right competitive rate.
“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,” concluded Hatton.
This article is from our sister site Australian Broker by Miklos Bolza.