“The average credit card debt is about $3,200 - less than our $5,000 limit - and most people have only one card, so the Zip Home Loan with Zip Card really does enable them to say goodbye to credit cards forever while getting the same key benefits,” loans.com.au Managing Director, Marie Mortimer said.
According to loans.com.au, a borrower spending $5,000 with a high interest (20%) credit card, could save $1,000 a year by using the Zip Card instead. This amounts to $30,000 in savings over a typical 30-year mortgage.
“We knew there had to be a better way to deliver the convenience of credit and when we put our heads together, this is what we came up with,” Mortimer said.
“We think this is the way of the future and we challenge the banks to follow us.”
Mozo Data Manager Peter Marshall says that whilst it’s great lenders are making strides to reducing debts, it’s always important to watch out for the fine print.
“A consumer-focused home loan lender is something Australians are missing, and offering a solution to credit card debt is a great place to start,” Marshall said.
“Used wisely, an interest free line of credit attached to your home loan could be a great spending tool to replace a credit card."
If you’re looking for a home loan, make sure to head over to our home loan comparison table to compare competitive rates and features from a range of providers.