That figure is up almost five per cent from 2021 numbers, and with interest rates at historical highs – and doubt over whether the increases are going to stop any time soon – it’s never been more important to have a mortgage that is manageable.
It may come as a surprise then, to discover that the average Australian does more research on their phone plan than they do on their home loan.
Pepper Money’s Money Mindset Report found a staggering 70 per cent of us admitted to weighing up our options more carefully when it came to phone, internet, insurance and electronics than we do on the mortgage product we choose.
A quarter of those surveyed admitted they were afraid of being turned down elsewhere, which is why they accepted the first offer on their mortgage without shopping around.
“Asking the right questions can be the key to understanding your personal situation and the options that are available to you as a homebuyer or homeowner,” explains Pepper Money CEO Mario Rehayem.
“Inquiring about how the lender assesses unique financial situations will help you understand their ability to tailor solutions that align with your individual needs.”
It comes alongside data showing four out of five survey respondents admitted they’d felt regret over financial decisions – with 71 per cent agreeing they could have avoided this regret if they’d done further research.
But if you fall into this category, it’s not all bad news.
Andrew Wheatley, founder of Melbourne-based brokerage Wheatley Finance, says it’s never too late to shop around, even once you’ve chosen a mortgage.
“Refinancing is the most underused side hustle in Australia,” he says.
“If you have a mortgage and you’re not exploring refinancing at least every two years you are leaving money on the table.”
“New clients typically get lower rates and often cashback offers,” he says.
“Existing clients often pay higher rates and get no cash. Banks know people do not like doing mortgage applications, so they offer their best deals to entice people to move, for the exact same reason they know they can put your rates up later on, and most people will accept it, or at worst complain so the bank drops the rate (then puts it back again later). It’s a fight you’ll never win.”
Wheatley suggests partnering with a mortgage broker who understands the above, and can advise on options that would benefit you in a refinance.
“This way, you take control of the system that usually works in favour of the banks,” he says.
It’s not only lower rates and cashback offers that can offer big rewards when looking at refinancing a loan, he continues.
“Refinancing with an experienced professional is a good chance to check that your loans and bank accounts are set up correctly as well, which can be a big help,” he says.
Pepper’s Mr Rehayem agrees, advising borrowers to “consider having an expert, like a broker in your corner to help you understand different lenders, loan alternatives and options available to you, without all the stress. A broker will get to know you,
unpack your needs and goals, analyse your borrowing capacity and understand what’s important to you in a loan.”