If your new year’s resolution is to save more money, try switching your interest rate

Forty per cent of Aussie mortgage holders don’t know the interest rate they’re paying on their home loan and are likely to be paying off their mortgage at a much higher rate than they should be.

Forty per cent of Aussie mortgage holders don’t know the interest rate they’re paying on their home loan and are likely to be paying off their mortgage at a much higher rate than they should be, new research from online mortgage broker unohomeloans.com.au has found. Baby Boomers are the least aware – with just over half (50.8%) able to name their interest rate – compared to nearly two-thirds (64.5%) of millennials and 60.9% of Gen X-ers. UNO also found almost a quarter of all Aussie mortgage holders have a mortgage with the same bank they signed up to as a child and are being penalised for their loyalty by paying more interest than other homeowners.

23.7% of Aussies have a mortgage with the same bank they were with as a child or the bank their parents use “Customers who hold a mortgage with their childhood bank pay, on average, 20 basis points more in interest than those who’ve shopped around since school,” said UNO’s founder and chief executive officer, Vincent Turner. This equates to around $1,272 more per year for an average Sydney home (or $1,188 more in Melbourne, $780 more in Canberra and $600 more in Brisbane). Need a home loan?UNO. The new way to get a better deal. Get Started

Do you know your rate?

If you don’t know your interest rate, now’s the time to find out. UNO customer Chris La Fou had been paying off his mortgage on the same rate for years. He hadn’t considered refinancing his home loan as it wasn’t something he knew much about. After chatting to www.unohomeloans.com.au adviser, Paul Sealy, Chris switched lenders and used the equity in his home to pay for renovations, a new car, and a trip to Hawaii with his mates. He walked away with almost $50,000 in savings. “All I was doing was servicing my old loan. I didn’t know I was able to do certain things or allowed to use [the equity] to buy other things,” admits Chris. “I thought it all had to go into your property.”

“I consolidated all my debt into one. And I have a better rate of interest.” “All my debt now is tied into the one product, which I’m quite happy about,” he says. “I consolidated all my debt into one. And I have a better rate of interest.”

Read: How UNO helped Chris pay for the renovations he’d always wanted

How much can I save by refinancing?Use UNO's calculator to estimate your savings. Calculate Savings

Stick to your resolution – switch your rate

Turner says home owners could save more than $1000 a year by refinancing – switching to a better rate – and save tens of thousands over the life of a loan. A homeowner with a $363,650 loan paying off the principal and interest at a rate of 4.1%, for example, could switch to 3.63% interest rate and save $1,176 a year in interest – or more than $35,000 over 30 years. The best way to shop around for a better deal is to try UNO’s refinancing calculator, or chat to a uno expert online, via phone or email. UNO can assess a customer’s individual situation against more than 50,000 lenders rules, in real time, and display the best home loan options for them. The company’s special relationship with lenders also means UNO advisers have access to rates customers won’t find elsewhere. “With interest rates sitting at record lows, it’s an optimal time to review what you’re paying and shop around for a better deal,” says Turner. “At the moment we’re seeing rates as low as 3.63% in our base of lenders. And what better time to shop around than at the start of a new year.”

What UNO uncovered

UNO’s key findings, based onresearch conducted by Core Data using a sample of 1,500 Australian mortgage holders:

  • 23.7% of Aussies have a mortgage with the same bank they were with as a child or the bank their parents use
  • Interest rates among mortgage holders who have a home loan with the same bank they were with as a child or the same bank their parents use are, on average, 20 basis points higher than other rates currently on offer
  • Among owner occupied mortgage holders who have a home loan with their childhood bank or parents’ bank, the mean interest rate is 4.5% compared to 4.3% for Aussies who opted for a different lender
  • Among investment property mortgage holders who have a home loan with their childhood bank or parents’ bank, the mean interest rate is 4.8% compared to 4.6% for Aussies who opted for a different lender.

What to do next:

  • Use UNO’s refinancing calculator to find out how much you can save
  • Chat to an expert about your options
  • Read more about refinancing. This information is general in nature and you should always seek professional advice when making financial decisions.Book a call in with UNO

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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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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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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
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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
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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
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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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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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