The Active Home Loan Manager

“How much could I save on mortgage repayments?”
These 5 questions reveal whether you could be paying a lot less.

Could you be paying too much for your mortgage? Our survey of 1,500 Australians has helped us reveal that people who answer yes to any of these 5 questions have the potential to save a small fortune.

1. Has the value of your property increased since you got your home loan?

Forgive the use of dull home loan terminology here – but this stuff can save you cash…

If the value of your property has increased since you got your home loan, your Loan-to-Value Ratio (LVR) has likely decreased – which is a good thing.

It means you’re potentially eligible for a lower interest rate than you’re on now. You can plug in what you estimate your property is currently worth and get a read on the low rates you could be able to unlock here.

House prices across Australia have been growing for years. Source: Core Logic.

2. Is your home loan with the same bank you were with as a child?

Our research found that 1 in 5 Aussie mortgage holders has a loan with the same bank they banked with as a child – or the same bank as their parents. The bad news for these guys? On average they pay 20 basis points more in interest than those who’ve moved on.

Economic jargon aside, here’s how much more people still with their childhood banks are paying  on their mortgage* (based on average house prices):

uno CEO Vincent Turner on the Today Show
Our CEO on The Today Show a few weeks back dropping some truth bombs about how much bank loyalty is costing us.

3. Do you know what your interest rate is (honestly)?

Our research found that 40% of us don’t know what our interest rate is.

Why? Probably because we have more interesting things to do on weekends than trawling through bank statements.

The good news is that, despite your bank’s veils of mystery, you can unlock some of the sharpest rates out there by taking about 28 seconds out of your life here.

4. Did you get your home loan through a mortgage broker?

As our CEO was saying in last week’s Australian Financial Review, traditional mortgage brokers typically send 75% of their loans to just three banks – despite the dozens of lenders now being available in the marketplace. On the flip side, at uno 75% of our customers’ loans go to 12 banks – that’s four times the diversity of traditional brokers.

Where uno's loans are sent

In a nutshell: Compared to the old-school players, we send more loans to a wider spread of lenders. That’s because we fight to find you the loan that’s right for you from across our entire panel. Broader choice means a deal that’s better suited to you.

5. How often do you shop around for a better rate? (Tip: Men and women are different on this one.)

Our research revealed that those Australians who compare their interest rate against the market at least every 6 months have a lower interest rate – more than 30 basis points lower on average, actually.

But here’s what’s intriguing: While 70% of men look at other options, only 60% of women do. Which means that if you’re a woman you’re less likely to be shopping around for a better deal. And those who shop around pay lower rates.

What to do next

If you answered yes to one of these five questions, it’s possible you’re paying too much for your home loan.

Happily, you can start unlocking that potential saving 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.

Calculation based on median house prices using a home loan with an 80% loan to value ratio and a loan term of 25 years. Based on a principal and interest owner occupied loan with a rate of 4.5% compared with a principal and interest owner occupied loan of 4.3%.

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