A new study has revealed Australians are wasting an estimated $7.4 billion a year by focusing on saving money on day-to-day purchases like fashion, food and travel.
The research, conducted by the University of Technology Sydney (UTS) for Heritage Bank, found while Australians are happy to shop around for minor purchases such as their mobile phone, most are too lazy to look for a better deal on their home loan.
While over two-thirds of people (67 per cent) knew they needed to shop around to save money on their mortgage, only one-third of people actually went to the trouble of making a switch.
A nation of ‘tightwads’
The study, which surveyed 1,000 people, showed three-quarters (76%) of Australians considered themselves to be ‘tightwads’.
But the areas they were most keen to get ‘bang for their buck’ were travel (95 per cent), followed by fashion (93 per cent) and food (90 per cent), University of Technology Sydney researcher, Dr Eugene Chan, said.
Losing sight of the big picture
The report says almost a third of Australians thought switching home loans was too much hassle, while another 28 per cent considered the cost of switching not worth the time and effort.
But for people who did take the plunge and changed their home loan provider, 19 per cent saved over $3,000 or more a year, 15 per cent between $2,000 and $3,000, 32 per cent between $1,000 to $2,000 and 23 per cent between $500 and $1,000.
The fact is we all complain about our mortgages – yet do we actually do anything about it?
A look at the three-year fixed rates for home loans on finder.com.au reveals rates ranging from 3.69 per cent up to 5.29 per cent. On a $500,000 loan over 25 years, that’s a difference of over $450 a month.
With the latest research showing those aged 65 to 80 owed an average of $158,500 on their mortgage, why not get yourself a better deal now?
