After a challenging year with the unexpected events of COVID-19, many Australian’s are prioritizing their financial position now more than ever.
Due to the recent unpredictable and challenging events of COVID-19, many Australian’s new years resolutions include saving money and developing a substantial savings to fall back on in case of another COVID-19 wave.
However, many people don’t know where to start when it comes to saving money.
Susan Mitchell, chief executive officer at Mortgage Choice, suggests every Australian homeowner should make it their new years resolution to save money by reviewing their existing mortgage and interest rates.
Reviewing Your Home Loan
A recent survey commissioned by Mortgage Choice found that from a sample of 1000 Australian homeowners, less than half (44.4%) of the participants review their home loan on an annual basis.
In fact, 13.7% have never reviewed their home loans.
It is recommended homeowners review their home loans and interest rates once a year to seize opportunities where they could save money, especially now with the current record low interest rates.
Interest rates play a vital role in saving money on a home loan.
From the same survey, 64.5% of borrowers between the ages of 30-35 admitted to not knowing the interest rate of their home loan.
This was followed by 56.4% of borrowers between the ages of 50-59 who also did not know their home loans interest rate.
Mitchell suggests that if you are unaware of your interest rate, the chances are your rate is too high.
If you are unaware of the interest rate on your mortgage, or if you have not reviewed your existing mortgage in the last year, you could potentially save thousands on your home loan.
How we can help
Finance Mutual Australia is a market leading South Australian mortgage broker with over 20 years of experience in the business. Whether you’re looking for a loan to buy your dream home or review your current existing mortgage, we can help. Contact us today to find out how we can help you.