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Borrowers hunt for home loan bargains

Loan Tips > Borrowers hunt for home loan bargains


Australians are shopping around for mortgage deals more than they were six months ago - before the big banks raised their interest rates.

Around 42 per cent of mortgage holders have switched lenders, or considered it, in the past six months, Credit Union Australia's National Mortgage Survey shows.

That's up from 31 per cent in May 2015, before the country's major banks jacked up their home loan interest rates to help cover the cost of extra capital raising.

CUA head of product Mark Petty said nearly half of those who admitted to shopping around listed interest rates as one of their reasons.

"Interest rates, and also fees and charges, are clearly top of mind when people are shopping around for a home loan," Mr Petty said.

"But it seems that for the majority of home owners, they don't pay much attention to the interest rate until the time comes that they are looking to switch."

Some 60 per cent of mortgage holders don't know what interest rate they're currently paying on their home loan, despite interest rates topping the list of reasons why borrowers switch lenders.

Mr Petty found that strange, given the amount of money at stake.

"For most of us, our home is our most valuable asset and our mortgage is typically our biggest weekly expense," he said.

"So, it is really surprising just how low the awareness is about what people are actually paying on their loan."


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