Paying off the mortgage is the Australian dream, however, how long has it been since you’ve checked the health of your home loan? According to research over 50% of those surveyed didn’t know the current interest rate on their home loan. Though a lower interest rate helps pay loans off faster, the research identifies a knowledge gap in terms of whether or not interest rates are competitive.
Paying off the mortgage is the Australian dream.
COVID-19 and financial pressure
This current research indicates that fewer Australians knew their interest rate in 2020 than in previous years. This coincides with the pandemic, whereby over 62% of Australians acknowledged that the pandemic has created financial stress due to worrying about their resilience in trying times.
Despite this, 13.7% of homeowners said they never review their home loan, with 41.9% doing so annually and 44.4% reviewing every two years. 64.5% of homeowners aged between 30 and 39 were the most likely not to know their interest rate, with those aged 50 to 59 at 56.4%.
Your mortgage is likely to be the largest debt you have, therefore, even a small interest rate reduction makes a significant difference towards your savings. If you haven’t reviewed your home loan for years, you might be surprised to know how much circumstances have shifted.
Interest rates are at historical lows and they’re tipped to remain low for years to come. In terms of getting a loan or borrowing more for investments, banks have relaxed lending criteria. As banks need your business, many are offering rebates and incentives worth thousands.
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Contact us for a home loan health check
Even without the effects of the coronavirus pandemic, loan products are consistently replaced, and often with more competitive benefits. Plus, if your circumstances have changed towards a better financial position, you could be taking advantage of lucrative investment strategies.
How to check your home loan health
With a global pandemic and busy, everyday schedules, it’s not surprising that checking the details of home loans isn’t on the top of everyone’s to-do list. Now that you know a competitive interest rate could save you thousands off your mortgage per year, it’s time to take action and it’s easier than you think.
Our Broker team can review your current loan with products from a panel of over thirty lenders and will let you know if your current home loan is competitive. If not, we’ll find you a product that best suits your needs and objectives and let you know what you can save.
Home loan research commissioned by Mortgage Choice. This information is provided by DPN Pty Ltd ABN: 94 630 700 186, Australian Credit Licence 514759. Individual lender criteria applies to the approval of credit products. Terms and Conditions apply, rates are subject to change. The information provided is general in nature, it does not take into account your personal circumstances, needs or objectives.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186, Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and a related entity of DPN Pty Ltd. Casa Capace Operations Pty Ltd ABN: 79 624 981 184, NDIS provider Number 4050038018 trading as Casa Capace.