Inertia a massive cost to Australian mortgage holders

According to a recent mortgage attitudes survey by wealth management company, Yellow Brick Road, 62% of respondents hadn't looked at how their home loan compared with others in the market for the past 12 months.

The RBA has dropped the official cash rate to record levels in the past 12 months. The rate is now 2.50%, that's 1% lower than a year ago.

The survey also revealed that 35% had not considered refinancing their home loan to get a better mortgage deal. 

Executive Chairman of Yellow Brick Road, Mark Bouris said there was a strong streak of inertia portrayed in the survey results.

"Australia's low rates are a bonus for those who are motivated, but it starts with you knowing the market. And a low interest-rate environment is no time to be complacent."

Using the Mozo Home Loan Comparison Calculator Homeowners on a $350,000 home loan paying 5.50% interest could save themselves over $30,000 by switching to a home loan at  5.00% interest over 25 years. That's a saving of $103 a month or $1236 a year.