The $18,000 mistake almost 80 per cent of home buyers in Australia make on their mortgages – and here’s how you can avoid it
- Data shows Aussie home owners could be making a mistake on their mortgage
- Online lenders often offer better rates than the big four, according to Mozo
- However, most borrowers tend to opt for the big banks due to fear of unknown
Australian home owners are making a mistake on their mortgage, potentially costing them up to $18,000.
That’s according to new figures released by cost comparison website Mozo.
Almost 80 per cent of property owners prefer to take out loans with the big banks rather than online lenders, which often end up being cheaper, according to data.
Aussie home owners are making a mistake on their mortgage, potentially costing them up to $18,000 (stock)
According to Mozo housing expert Steve Jovcevski, the cost difference between the cheapest offers from the big banks and online lenders is roughly $18,011 on a $400,000 home loan over 30 years.
Mr Jovcevski told news.com.au: ‘Consumers at the moment are pretty cash strapped; more than ever people are looking to save.’
Mozo found big banks offer home loan interest rates of 3.89 per cent, compared to one online lender, which offers a rate of 3.67 per cent.
However, according to the price comparison site, most big banks offer outdated rates of 4.5 per cent or higher, meaning those who take out a loan from an online site could save thousands.
Mozo found that most borrowers tend to stick with what they know, meaning many still opt for the bank – despite their higher rates.
‘There’s the fear that something will go wrong, and that’s why the banks continue to hold a lot of the market,’ Mr Jovcevski said.
‘The online lenders have better rates and better overheads, but the big problem a lot of them is the trust factor.’
‘There’s the fear that something will go wrong, and that’s why the banks continue to hold a lot of the market,’ Mr Jovcevski said