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Aussie homeowners could save over $100k by understanding their home loans, Mozo report reveals

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Leading financial comparison website Mozo.com.au has released its 2024 Home Loan Report, which reveals that Australian homeowners could save over $100,000 by taking a closer look at key home loan features and making a few simple changes.

The report, titled “Home Loan Hacks & Unsung Heroes,” found that 75% of Aussie mortgage holders are openly concerned about their repayments, yet 56% don’t know their interest rate, the type of home loan they have, or their loan-to-value ratio (LVR).

“Buying a home is one of the biggest investments you’re likely to make, but after so many rate hikes, Aussies are finding it difficult to stay on top of the changes, with 2 in 5 admitting they don’t know their home loan rate,” said Rachel Wastell, Mozo’s personal finance expert.

Wastell emphasized that this lack of awareness presents an opportunity for Australians to save thousands by making simple changes, such as comparing interest rates, increasing payment frequency, and considering alternative lenders.

The report also revealed that borrowers who opted for lenders outside of the Big Four banks could save roughly $436 per month in repayment costs.

“The 2024 home loan winners list reveals that fintechs, regional banks and credit unions are the unsung heroes of home loans, and that borrowers who shop small could see substantial savings,” Wastell said.

Customer-owned banks emerged as clear frontrunners in Mozo’s analysis of over 475 home loans from 99 lenders, comprising 63% of the winning providers, followed by online lenders at 24%.

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Wastell stressed the importance of Australians facing their finances head-on and comparing their home loans with others on the market to unlock potential savings.

Mozo’s Home Loan Report 2024 offers practical insights and hacks to empower homeowners, such as exploring alternatives to the Big Four banks, using offset accounts, comparing rates regularly, increasing payment frequency, considering split rate loans, and even earning income from renting out a garage.

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