Are you paying too much on your mortgage?

Our research shows 52% of Australians aren’t confident they’ve found the best home loan deal for them. Could you be paying too much on your mortgage?

UNO customer and co-founder of an IT recruitment business Bloc Technology, Roman Lenio was not afraid to switch lenders to get a better deal on his two mortgages with his partner. After refinancing their home mortgage and the loan on their investment property (both in Sydney), the couple will now save thousands of dollars a year in interest.

Interviewed by The Sydney Morning Herald last week, Lenio, 37, says switching to a better mortgage deal was well worth it: he shaved 0.2 percentage points off both loans to arrive at rates well under 4%.

Many Australians miss out on savings because they are not prepared to refinance. Our new research shows two thirds of Aussie homeowners have never switched their rate and one in seven would never leave their bank – regardless of how big the discount.

We spoke to 1500 mortgage holders about their satisfaction with their home loan and their switching habits and found out some pretty crazy stuff! Turns out we’re a pretty lazy, loyal and scared nation. We compiled the results in this report: ‘Laziness, loyalty and fear: why Aussies don’t switch home loans’.

Our research found Aussies who have switched their rate are paying 13 basis points less on average than those who haven’t, with the common roadblocks to not switching being loyalty to their current bank or lender, the perceived amount of effort required to switch, and the fear of talking about finances.

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“If you’re unhappy with your current home loan deal but stay anyway, you’re effectively paying an inertia tax,” says UNO founder and CEO Vincent Turner, who advises mortgage holders to shop around every year or two to ensure they’re always getting the best rate.

The cost of not switching

A comparison of interest rates revealed that people who have switched pay an average rate of 4.29% versus the 4.42% interest rate being paid by those who haven’t switched. Say what! On an average $500,000 loan, this equates to someone paying $468 more per year – or $14,040 extra over a 30-year loan. That’s a lot of money. You could buy a brand new watch, fly business class to Europe…

Loyalty

Many Australians are fiercely loyal, spending a long time glued to the same rate and opting for well-known lenders. Nearly half have had their home loan for more than five years, two-thirds have been a customer of their lender for more than five years, and three quarters have their loan with a Big Four bank. On top of this, 15% would never leave their lender – regardless of how big the discount. With 70% of all marriages undergoing an affair at some point, turns out Aussies are more loyal to their bank than their spouse.

Laziness

Laziness is a big factor when it comes to not switching. More than two-thirds of Aussies who haven’t switched say they’ve been turned off by the effort. More than three quarters wouldn’t bother leaving their lender for a 20 basis point discount – a saving that would equate to $700 a year on an average $500,000 loan. Get off the couch, people!

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Fear

Amazingly, many Aussies are more driven by a fear of awkward conversations than they are by saving money. Half of those who admit to not switching say the thought of having their finances reviewed by a third party puts them off. And we thought you were all scared of spiders!

Luckily, with UNO you can do almost everything online – sans the awkward convos. Unlike the veil of mystery put up by many banks, with UNO you can unlock some of the sharpest rates out there by taking about 28 seconds out of your life here.

Misinformation

Fees also put many borrowers off switching, with nearly two-thirds saying that exit fees are a deterrent to switching and saving. This is despite the fact that lenders are no longer allowed to charge exit fees on variable rate loans taken out after 30 June 2011.

“In many cases, people estimate exit fees to be higher than they actually are,” says Turner. “Rule changes have meant that exit fees have come down significantly in the last few years and can end up being only a couple of hundred dollars.

“Interest rates are at historically low levels, so it’s a great time to push through the roadblocks that have prevented you from switching and trade up to a better deal.”

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Are you driven by laziness, loyalty or fear?

If so, it’s possible you’re paying too much for your home loan.

Happily, you can start unlocking potential savings with just a few clicks. So go on – take those 28 seconds we mentioned earlier to plug in a few details to see what you could be saving.

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This information is general in nature and you should always seek professional advice when making financial decisions.



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TESTIMONIALS

What our customers are saying

Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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Linda
November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
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