Failure to switch is costing Aussies dear

New research from UBank, which is owned by the National Australia Bank has shown that Australians could be losing thousands of dollars by not switching to more cost-effective financial products.

The company surveyed more than 1,000 Aussies and found that 40 per cent are completely unaware of the mortgage interest rate they pay on their home loan.

Furthermore, almost a third of those quizzed about their outstanding debts claimed that it was far too time consuming to switch to a different home loan deal from another provider – a move that in the long run could save them thousands.

Alex Twigg, general manager of UBank, claimed that laziness was a major problem.

Speaking to the Telegraph, Mr Twigg said: "The apathy syndrome is about not investing time or effort because it's all too hard."

"The reality is switching is really simple, it's really quick and you can make really big savings fast."

Meanwhile, the Mortgage and Finance Association of Australia's chief executive officer claimed that choice could potentially be a barrier to switching as many Australians would not know where to begin when it comes to switching, or where to switch to.

He told the news provider: "I think the real issue is where are you going to switch to.

"I think the feeling from a lot of consumers is that the grass on the other side of the fence is no greener than where I am."

However, since the ban on exit fees for mortgages, a growing number are taking a different approach to the home loan market and many are starting to shop around.

A recent report in the Sydney Morning Herald showed that a record 35 per cent of home loans issued in 2011-12 were for existing customers wanting to switch lender.

Previously, home loan holders could be charged for exiting their mortgage deal, something that put many off switching.

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