Around 31 percent of Australian borrowers feel that sourcing for better mortgage deals are too costly and time consuming, according to research by National Australia Bank’s (NAB) UBank.
The survey, which polled over 1,000 Australian borrowers, revealed that close to 40 percent of respondents do not even know the mortgage interest rates they are paying, while 73 percent are unsure whether refinancing could save them money.
Alex Twigg, General Manager at UBank, said that Australians are still hesitant when it comes to shopping around for better mortgage deals. They are also unaware that they can save around AU$1,900 (S$2,471) on average per year just by refinancing their loan.
“The reality is switching is really simple, it’s really quick and you can make really big savings fast,” he noted, adding that “there’s absolutely no fees in the switching process”.
On 1 July 2011, the government implemented laws prohibiting mortgage exit fees. But for borrowers who took out mortgages before the new laws were enacted, exit fees may still apply.
Phil Naylor, CEO of the Mortgage and Finance Association of Australia, said that the real issue facing borrowers planning to switch is whether they could get a better loan deal elsewhere.
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