Reluctance to haggle could cost Aussies $6k in household expenses, Mozo research finds

Despite the opportunity for more long term savings, research from Mozo has revealed that Aussies are three times more likely to haggle for a lower price on white goods than they are on ongoing household expenses, such as home loans and energy deals.

The research showed that although a vast majority of Australians are unhappy with their energy plan, credit card and home loan provider, half of the nation are still reluctant to review what they’re currently paying for or to make any changes.

Mozo Director, Kirsty Lamont said that getting out your bills and comparing providers can be a bit of a chore but this time in isolation is the perfect opportunity to tackle tasks that may have been put off for too long.

“The majority of households are satisfied to settle for an okay deal because they think it’s too time consuming or uncomfortable to negotiate with their providers,” Lamont said. “Yet research from Mozo has found that haggling carries a high possibility of success. If you push for a discount, three out of four times you’ll get one.”

Men more likely to negotiate than women

As well as showing how prepared we are to haggle as a nation, Mozo’s research also uncovered who amongst us is keen to flex those haggling muscles. 

Not only did the research show that men are more inclined to negotiate than women, it also showed that different age groups are concerned with different expenses. While over 65s are more worried about getting a better deal on their energy plan and car insurance, comparing and switching mortgages is of a higher priority for those aged between 39 and 64.

In terms of geography, New South Wales came out ahead, with residents more likely to review and switch more often than in any other state.

RELATED: Can I refinance my home loan during Coronavirus?

Households could save $6k by switching

Mozo’s data experts found that Aussies could save a total of $6,000 in one year, simply by switching to a more competitive energy plan, home loan, car and home insurance provider, and by transferring existing credit card debt to a balance transfer credit card.

The average savings worked out as per the following:

Energy savings were based on average prices in the Australian energy market and took into account the increased power usage that is no doubt happening as a result of COVID-19. The calculations were based on an average household of two adults and two children, working from home for eight hours a day, five days a week.

RELATED: Working from home adds an extra $527 to your energy bill every 6 months, says Mozo

Mozo’s top tips on cutting down household bills

Not sure where to start? Here are Mozo’s top tips for cutting costs on your household expenses:

  • Become a detective and compare, compare, compare! When it comes to getting yourself a lower rate, doing some research is a must. Check out comparison websites, like Mozo, to see what other rates are out there. Once you’re satisfied that you could be paying less elsewhere, take your findings to your current provider and ask for a rate reduction.
  • Don’t settle for second best. If you’re not happy with what a provider offers you then don’t accept it. Either keep haggling or think about switching to a provider with a more competitive rate.
  • Try to haggle for more than just a lower rate. While a lower rate is the ultimate goal, it’s not the only thing you can haggle for, other perks to aim for include fee waivers, rewards points and cash back.
  • Don’t be afraid to bundle. When haggling for a more competitive deal, you may find it worth your while to bundle up multiple products, so be prepared to make a few changes.

Want to start by refinancing your home loan? Why not head to our compare refinance home loans hub or take a look at the offers below to get going.

Compare refinance home loans - last updated 4 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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