Are You Among the 82% of Aussies Unaware of Their Mortgage Rate?
Mortgage repayments can form a sizeable chunk of any homeowner’s budget, and your home loan rate will determine the impact this has on your monthly budget and expenses. That’s why everyone should know about their mortgage rate.
However, an overwhelming majority of borrowers do not know their home loan rate, with 86 percent of Australians also unaware of their monthly expenses, a new study The Know Your Number Index has revealed.
The study examined Australians’ knowledge of their household and entertainment expenses. The research found that despite the result being 3 percent better than the previous year, 82 percent of Australians did not know their home loan rate (77 percent of males and 88 percent of females).
Getting comfortable with your home loan, staying loyal to the same financial institution you’ve been with for years, and adopting the ‘set and forget’ mentality to your mortgage repayments could be costing you thousands in the long term.
The index also found that 86 percent of respondents said that they were unaware of their expenses, with only 20 percent stating that they had full control of their finances.
Further, 59 percent of Australians claimed that their current financial situation had caused them stress or loss of sleep, with 44 percent noting that they’re “constantly worried” about their financial future.
Additionally, the research revealed that only 22 percent of respondents accurately know their credit card debt, with 5 percent unaware of how much they owe.
With only 28 percent of Australians stating that they use budgeting tools, this highlights the importance of household budgeting in minimising stress and helping maintain a balanced lifestyle.
Knowing your mortgage rate is vital as you could be missing out on opportunities to refinance to a lower rate and potentially saving thousands of dollars offered by competitors in the market, like Mortgage House. Want to stay on top of your finances and keep track of your monthly expenditure? Our free Budget Planner Calculator Is a good place to start.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.