Whether it’s earning a free coffee, using a coupon code to save at the checkout or scoring a two for one deal on cookies, most Aussies know a good bargain when they see one.
But according to new Mozo research, there’s one mega bargain opportunity majority Aussies are forgetting: their home loan.
The data revealed that despite half of Aussie homeowners proudly calling themselves bargain hunters, a whopping 75% admitted they had not refinanced their home loan, potentially missing out on up to $106,000 in savings.
“There are hundreds of ways to keep costs down from chasing rewards to joining loyalty programs or buying in bulk. This may save you a few dollars here and there but the reality is, by not going with the most competitive lenders in the market, you could be losing tens of thousands of dollars over the course of your loan,” said Mozo Director, Kirsty Lamont.
“The average amount of time it takes to refinance is five days, meaning that you could be saving major amounts of money in less than a week.”
How to beat the home loan loyalty tax
Earlier this month the Reserve Bank lowered the official cash rate to 0.50%, which resulted in many lenders pass on the full rate cut to customers.
However, Mozo data has shown that the average big four home loan rate still remains 1% higher than the lowest rate in the market, leaving many Aussie homeowners stuck with a dud deal.
70% of homeowners even admitted they felt they were being hit with a loyalty tax by staying with their current lender, while 95% said they should be comparing and making the switch or pushing their lender for a better deal.
Lamont explained that while having a variety of lenders at your fingertips is an easy way to guarantee yourself the best deal, for many Aussies, it may also be the reason holding them back.
“For any bargain hunter, the prospect of saving up to $100k should be enough motivation to pick up the phone and start talking to their bank,” says Lamont.
“Admittedly it can feel overwhelming with hundreds of lenders fighting for your attention. This is why Mozo has done the hard yards through the Mozo Experts Choice Awards, identifying the top low cost lenders in the market.”
Launched today, the 2020 Mozo Experts Choice Home Loan Awards are designed to give Aussie borrowers an insight into the lenders our expert judges believe are worthy of consideration.
Analysing more than 400 home loans from over 80 providers, our judges uncovered award-winning products for every type of borrower, from investors to first home buyers.
So if you’d like to find out who made it onto this year’s winners list, head on over to our 2020 Mozo Experts Choice Home Loan Awards winners page.
And if you’d like to check out how our winners were chosen, have a read of our methodology report.