Australia’s National Mortgage Day Designed to Battle Complacency
Recent studies show only 16 percent of people know their mortgage rate, and the proportion is declining, showing a growing complacency amongst mortgage holders, according to research commissioned by UBank.
Almost as disturbing is it is estimated that only approximately 50% of people shop around and compare mortgage rates between lenders.
Urban Money Home Loan Manager Geoff Wilson and organiser of National Mortgage Day said these figures show why we need Australia’s National Mortgage Day, so people can at become more aware about the cost of their mortgage and how a few simple changes can save them thousands of dollars over the life of their home loan.
Mr Wilson said, “If someone’s 2017 new year’s resolution involves some sort of financial goal, the first place to look to save money should be your mortgage. It is one of the biggest expenses in the household budget and by making a few simple changes, like changing repayments from monthly to fortnightly, it can make a massive difference.”
On Australia’s National Mortgage Day Mr Wilson is encouraging people to follow five simple steps.
Step 1 Dig out your mortgage statements and documents
Step 2 Find out what rate you are paying as well as any associated charges
Step 3 Research and compare lenders for the best type of home loan
Step 4 Contact your preferred lender to discuss your financial strategy
Step 5 Celebrate the savings you could make
Mr Wilson says money that is saved off the mortgage could be redirected back into the family budget to help with other expenses such as healthcare, education, home upgrades, vacations or put into a savings account.
“The sound of National Mortgage Day may sound boring, but the savings that can be made are serious. If you have ever had a kick out of selling something on Gum Tree, made money from renting a spare room through Airbnb, or found a lazy $50 buck note in the jeans you have just put on, remember that feeling, but amplify it! That’s the feeling you get when saving a chunk off your mortgage!,” added Mr Wilson.
Mr Wilson uses a case study to highlight his case.
“On our website we talk about a couple, Paul and Melissa, who just by changing their repayments from monthly to fortnightly reduced the total interest paid over the life of the loan from $281,000 to $234,000 and pay their home loan off in 25 years and 8 months, instead of 30 years. That is a serious saving of time and money,” said Mr Wilson.
For more information about National Mortgage Day and other other handy mortgage and savings tips
0411 484 715