Homeowners are wasting billions on home loans they could have got for cheaper.
A recent article [here] highlighted the importance of regularly reviewing your loans to make sure they are at the cheapest possible rate.
After all what’s the point of paying more interest than you need to right!
Here are some of the highlights from the article;
- Aussie property owners are wasting about $900 a year on unnecessary home loan payments by failing to seek out a better rate.
- The financial waste totals an estimated $4.2 billion annually.
- Home loans were one of the key drivers of financial waste for Aussie households, dwarfing the costs of unused gym memberships at $1.8 billion, standby energy costs [the electricity drained by appliances not in use] at $1 billion and $550 million in bank exception fees.
- Only the total costs of food wastage was higher than wasted home loan spending at $9 billion.
- Homeowners often failed to take action on sub-par home loans thinking they were on the best rate they could get.
- Most homeowners purchase or refinance their home feeling confident they’re on a good rate. A few years down the track consumers no longer think about their home loan as something they should be fighting to get a good deal on. Most have a set and forget approach to their loan.
- Rates that may have been competitive at the start of the loan often deteriorated due to changes in interest rates, the value of the property or the introduction of new lending products.
- Homeowners could save on their loan if they had gained significant equity in their properties since purchasing.
- Over time, it is easy for loans that were excellent deals at the start to become a source of major financial waste.
- Most homeowners never sought to improve their deals because they didn’t take an active approach to their home loan.
- It’s estimated that more than half of loan customers don’t know what their current rate is and have never asked their bank or broker for a better rate on their home loan.
- Most home loan customers have never discussed strategies for paying off their loan faster.
- It is easy for homeowners to become complacent since most banks were more effective in communicating deals to new buyers rather than existing customers.
It’s always a good time to pay less on your home loan…
Why not start today – just pick up the phone [08 8451 1500] or send us an email [firstname.lastname@example.org].
Whether it’s negotiating a better deal with your current bank or refinancing your loan to a cheaper lender – we’re ready to help and there is no better time than right now!
Sam, Matt & Andy
PS. If you’re paying more than 3.5% on your home loan make sure you contact us as there’s a good chance we could save you money! To see all of our best rates click here