Aussies don’t always have a grasp on all the important numbers in their lives, including their home loan rate.

New research commissioned by UBank reveals that only 16% of Australians know their rate, even though it’s one of the most important indicators of your financial wellness.

Aussies are more likely to remember simpler numbers, such as their street number (97%), home phone number (85%) and banking pin (94%).

Given that most home loans have a term of at least 25 years, if mortgage holders don’t keep a close eye on their finances, particularly the rate, it can mean paying thousands of dollars more for their home loan.

“It’s really surprising to see the number of people who don’t know their home loan rates as it’s one of the most critical numbers in any household, from a financial perspective.”

UBank CEO Lee Hatton

“We want to encourage people to take some time over the holidays to look at their rates and understand if there is something better for them on the market that can help save them money in 2016,” said Hatton.

The research, conducted amongst 1,000 Australians with a home loan, showed that people are more likely to remember the numbers in their lives that aren’t linked to their finances.

77% of Australians remember their car registration number, and 73% can recall their parents’ phone numbers from memory.

Other key numbers from the research included:
 

• Only 42% of Australians can remember their bank BSB, where 41% can only remember their bank account number

• 79% of women can recall their parents’ phone number, where only 68% of men can claim the same knowledge

• And of the numbers Aussies don’t reveal, Millennials (50%) and Gen X (49%) are less likely than Baby Boomers (41%) to reveal their income

• As well as income, some Aussies aren’t happy to reveal the amount of debt they have (46%), their weight (31%), number of partners in life (30%) and their age (16%)

UBank offers variable mortgage rates from 3.99% pa on its UHomeLoan, which could save mortgage payers nearly $100,000 on a 30 year / $500,000 loan.*
 

Other interesting stats include:
 

• 71% of men and 71% of women claim to be able to recall their partner’s mobile number, which is up on the research conducted in 2013, where only two thirds of women (68%) and just over half of men (57%) can remember their partner’s mobile phone number

• QLD residents are less likely to be able to get hold of a partner as 39% can’t remember their partner’s phone number at all

• When it comes to remembering home phone numbers, WA residents (88%) beat NSW residents (84%). But when it comes to remembering mobile numbers, VIC residents (97%) beat their WA (90%) counterparts

• Spare a thought for parents in QLD and SA as 29% in each state can’t remember their parents’ numbers either

• When put on the spot, only 65% of WA residents can remember their work phone number – not ideal in a networking situation and out of business cards

• When it comes to driving, VIC residents take more notice of their car number plates with 82% being able to recall their details whereas only 66% of WA residents can claim the same knowledge 

• 12% of NSW residents become unstuck when online banking as they can’t remember their banking password without looking it up, but only 4% of VIC residents struggle with online banking passwords

• When it comes to the numbers we hold close to our chest, NSW residents are more private with the figures for their debt (53%), income (55%) and age (20%) never revealed. WA residents are a lot freer with their information with 36% happy to reveal income, debt, age, weight and the number of partners they’ve had

• WA residents either don’t know their mortgage rate (11%) with some not even caring about the rate they are paying (7%). They are also more apathetic compared to the national average of 7% who don’t know their rate and 5% who aren’t interested in knowing

• In 2013, a third (35%) of the men surveyed said they knew their home loan interest rate with certainty but only 17% of women were as confident. When compared to 2015, recall of mortgage rates has reduced with only 19% of men and 13% of women able to recall their exact mortgage rate
 

*Savings estimate based on

• UHL (3.99%) Vs CBA No Fees Variable Rate (4.90%) taken from the CBA website 

• $500k loan, P&I OO, Interest payment: monthly, 30 year

The savings for using a UHL are:

• $269 p/m

• $3228 p/a

• $97,095 over the life of the loan

3.99% pa is the rate for new Owner Occupier Principal & Interest Variable Rate UHomeLoans, and includes the current discount offer. A different rate will apply for Interest Only and/or Investor loans, check www.ubank.com.au/home-loans for more details. 

Research

The UBank survey results are based on a survey conducted by Galaxy Research, conducted in December 2015 on 1,005 Australians aged 18-64 in Australia have a mortgage.

2013 UBank research was conducted by Yellow Squares on behalf of UBank. 1,000 Australian respondents aged between 18-65, with a home loan, were surveyed.

For further information, please contact:

Fred Chesher

T: 02 8281 3859
E: fred@pulsecom.com.au