Australians are known for being an active bunch. We learn to swim from a young age, many of us cycle to work – we pride ourselves on being fit. Even so, we waste $1.8 billion a year on gym memberships we don’t ever use.
But before you kick yourself with your squeaky clean joggers, spare a thought for the homeowners who are wasting more than double that amount on suboptimal home loans.
That’s right. New research from active home loan manager UNO has found one of the biggest hidden drivers of household financial waste in Australia is home loan interest. According to UNO, Australians are wasting an estimated $4.2 billion each year on unnecessary home loan costs.
UNO’s Household Financial Waste Report found most homeowners begin their home loan with a good rate and a mortgage that works well for them. But myriad factors such as rising or falling interest rates, the changing value of the property and new lending products entering the market all impact how well that loan is performing – and many Aussies are simply turning a blind eye.
“This ‘set-and-forget’ approach to home loans is costing us billions each year,” said UNO CEO Anthony Justice, adding 53% of homeowners don’t even know what their current interest rate is.
The report breaks down home loan wastage in each state and looks at what homeowners could stand to save if they switch to a better rate. Homeowners in New South Wales could potentially save $1,300 in lower interest repayments, while Victorians could save $1,200.
Luckily for homeowners, there’s little work involved in keeping their rate in check as, as an active home loan manager, UNO can do the work for them.
UNO’s loanScore technology analyses the market daily to check customers’ loans against thousands of home loan products in the market. Customers are alerted when their potential savings hit their chosen threshold and, with their approval, UNO can renegotiate with the customer’s current lender or switch them to a better deal.
“By letting us keep an eye on your rate – and letting you know when you could switch to a better one – Australians could save thousands each year,” said Mr Justice.
Australians, you know you’re wasting thousands on your home loan. So, should you just sit there? Yes! Because UNO fights home loan waste for you.
As for that unused gym membership… you’re going to have to sort that one out yourself.