mortgage mistake

Common mortgage mistake costing Aussies $2,000

PHOTO: This mortgage mistake is costing you $2,000. Source: Getty

Nearly half of all Aussie home owners don’t know the exact interest rate on their home loan, and they could be losing thousands per year because of it, a new report has shown.

Only 46.5 per cent of Aussies know their current interest rate, and apathy appears to be increasing, with fewer Australians knowing their rate in 2020 compared to previous surveys, according to data from Mortgage Choice.

Borrowers aged 30 to 39 were the most likely to not know their interest rate, followed by those aged 50 to 59.

But being complacent is costing them.

In the past year alone, the official cash rate has dropped by 6.5 per cent, and many lenders are open to negotiating on rate reductions, chief executive officer of Mortgage Choice, Susan Mitchell said.

“Let’s say your principal and interest rate is 3.99 per cent and shopping around with the help of a mortgage broker enables you to drop by 50 basis points to 3.49 per cent.

“On a 30-year home loan of $600,000, the savings could be in the vicinity of $170 per month,” she said.

That’s more than $2,000 per year.

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