Australian homeowners are failing to put in the effort and seek out better home loan deals despite slow wage growth and piling levels of household debt.
These findings come from new research by State Custodians Home Loans which polled over 1,000 people across the country. Surprisingly, only 13% said they were always on the lookout for better home loan rates.
More shockingly, 33% said they were apathetic about shopping around for a better home loan deal. Seventeen per cent said that while they wanted to look for a better rate, they were unsure of how to proceed while 16% said they hadn’t even considered switching.
State Custodians general manager
Joanna Pretty suggested borrowers get in touch with their mortgage broker to see about a cheaper deal.
One hurdle to this was that many Australians see changing their home loan as a huge hassle, she added, although often all that is required is a single phone call.
Younger borrowers were more likely to shop around for a better rate with 19% of Gen X and 20% of Gen Y looking every one or two years. Only 11% of those over 50 scouted for a better deal with the same frequency.
The study also found that men (73%) were more likely to shop around than women (59%).
“It’s a fact that many of us are time poor these days, particularly if you’re working and juggling home and family life. However, if you would like a cheaper loan, particularly if you are financially struggling, then it can be really worthwhile shopping around,” said Pretty.
“A little effort may end up going a long way.”
Related stories:
Investor lending plunges by $3bn
Brokers aid consumers, SMEs & small lenders: RBA
“Bad regulation costs the community”: ASIC
