Want to know how to earn $48,000 in 10 minutes?
It doesn’t involve playing the lottery, or even getting out of your seat – just check the interest rate you’re paying on your home loan and chances are, you could be getting a better deal.
“Home loans are one of our most expensive costs but it’s one of those set-and-forget things,” says Canstar finance editor and commentator Justine Davies.
“There’s too many other things on the to-do list so people just don’t review the rate they’re on and it can really fluctuate over time.”
In an analysis of variable rate mortgages from more than 100 lenders, Canstar found that on a loan of $300,000, which is the national average loan amount, the difference between the average and cheapest loan was $160 per month, and $1900 per year.
Over 25 years, that’s about $48,000.
Ms Davies said home owners with variable loans should be keeping a constant eye on the interest rates they are paying as well as the market average.
If you’re paying more than the average, it’s time to call your lender, and if they can’t do a better deal, it’s time to find a lender that will, she said.
“There’s well over 100 lenders out there, so it can certainly seem daunting to people if they have to start shopping around and they’re not quite sure how to do that,” Ms Davies said.
“But you could potentially save yourself hundreds of dollars a month, so it’s a really worthwhile thing to do.”
To see if you can get a better deal, take Canstar’s 10 minute challenge at www.Canstar.com.au/10minutes.