Australians could save thousands of dollars a year by regularly reviewing their rates and looking for a better deal.

While most Aussies can remember their phone number (94%), number plate (77%) and parent’s phone number (76%), new research from UBank has revealed 85% 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% in 2016. 

Of those surveyed, 44% could only recall an approximate figure for their home loan rate while the remainder (41%) simply didn’t know their rate at all.

“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.”

UBank CEO Lee Hatton

“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,” UBank CEO Lee Hatton said.

The research, conducted amongst 1,021 Australians with a home loan, also revealed Aussie’s are feeling financially strained.

54% of Australians admit their financial situation is causing worry and stress. A further 33% 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,” Hatton said. 

“UBank has been offering some of Australia’s lowest home loan rates for the past five years. Being a purely online bank, we’re able to pass on big savings to our customers". 

Ms Hatton says home owners currently paying 4.24% p.a. on a 30 year, $360,000 home loan could end up paying more than $37,000 more than they need to.

If they were on UBank’s low variable rate of 3.74% p.a. instead*, they could have an extra $1,246 in their wallet each year. 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.

“UBank encourages Australians to eliminate financial stress by reviewing their finances and finding the best deals on offer. A little bit of homework can go a long way to reduce the strain and help Australians live a bigger, happier life.”

Lee Hatton

This year for the first time, UBank’s research also surveyed mortgage holders with credit cards and found only 14% know what their current credit card interest rate is, while 49% don’t know it at all.

A surprising three out of four Australians don’t know how much credit card debt they owe, and 80% don’t know exactly how much they are paying each month in credit card interest. 

* UBank’s low variable rate of 3.74% p.a. is only available on new owner occupier P&I loans and includes our current discount offer.

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James Curtis  
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