UBank: most Australians don’t know their mortgage interest rate

Share

Share

New research commissioned by UBank reveals only 16 per cent of Australians know the interest rate they pay on their home loan, even though it’s one of the most important indicators of financial health.

The Galaxy survey of around 1,000 people shows that while Australians have a solid grasp of some numbers in their lives, such as remembering their street number (97%), their online banking password (91%) or their car registration (77%), they don’t always have a grasp on many of the other important numbers in their lives, including their home loan rate.

The findings show a decline in people’s recall of their mortgage rate when compared to a similar survey from 2013, which found 35 per cent of men and 17 per cent of women surveyed said they knew their home loan interest rate with certainty. When compared to 2015, recall of mortgage rates has reduced even further, with only 19 per cent of men and 13 per cent of women able to recall their exact mortgage rate.

UBank CEO Lee Hatton said that with an average mortgage period of 25 years, mortgage holders who don’t keep a close eye on their interest rate can end up paying thousands of dollars more over the life of their loan.

“The survey is a timely reminder for people to keep track of how much they’re paying,” Ms Hatton said.

“It’s really surprising to see the number of people who don’t know their home loan interest rate as it’s one of the most critical numbers in any household, from a financial perspective.

“We want to encourage people to take some time over the holidays to look at their rate, and understand if there is something better for them on the market that can help save them money in 2016.”

Other interesting findings from the research included:

  • Only 42% of Australians can remember their bank BSB, where 41% can only remember their bank account number;
  • 73% can recall their parents’ phone numbers from memory; and
  • Millennials (50%) and Gen X (49%) are less likely than Baby Boomers (41%) to reveal their income.

UBank offers a variable mortgage rate of 3.99%, which could save mortgage payers nearly $100,000 over the lifetime of a mortgage.*

Research

The UBank survey results are based on a survey conducted by Galaxy Research, conducted in December 2015 on 1,005 Australians aged 18-64 in Australia have a mortgage. 2013 UBank research was conducted by Yellow Squares on behalf of UBank. 1000 Australian respondents aged 18-65, with a home loan, were surveyed.

 

*Savings estimate based on

  • UHL (3.99%) Vs CBA No Fees Variable Rate (4.90%)
  • $500k loan, P&I OO, Interest payment: monthly, 30 year

The savings for using a UHL are:

  • $269 p/m
  • $3228 p/a
  • $97,095 over the life of the loan

Topics

SEE ALL TOPICS

Related Articles

  • Customers

Budgeting with heart: Australians prioritise family and furry friends

When it comes to budgeting, Australians are sacrificing smaller, regular purchases to free up money to keep spending on what they love most – their kids and pets.

  • 16.07.2024
  • Time to read 3 min read
  • Indigenous Affairs

Kooya – success built on family and community

How 2024 West Australian of the Year and NAIDOC Award Winner Kim Collard made his mark in business and the community.

  • 09.07.2024
  • Time to read 1 min read
  • First home buyers

Colac teen moves from couch to home with a new teapot in tow

Nineteen-year-old Noah* had been couch surfing for years, saving diligently to purchase his first home. Although he had managed to save $20,000, he was told it wasn’t enough of a deposit alone. But that didn’t stop him from settling on his new place last month.

  • 08.07.2024
  • Time to read 3 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.