Investors reluctant to switch banks, survey shows
A new survey suggests a lack of awareness among Australian investors about interest rates and the time it takes to make a switch to another bank.
New research by UBank shows almost 40 per cent of Australians are not aware of the actual interest rate they are currently paying.
Furthermore, almost three-quarters were unsure if they could save money by refinancing with a different home loan provider.
General manager at UBank Alex Twigg said neither of the perceived claims were true, with advances in technology making it easier to switch.
The average online application for refinancing took half an hour, Twigg said, pointing to Infochoice research which found investors could save up to $1,900 a year by refinancing.
"The likely benefit of those savings is our economy, particularly the struggling home improvement industry, with over half of Australians surveyed claiming they would improve things around the home with the money they saved on lower repayments made following a switch of providers," he added.
Australians may be living in blissful ignorance when it comes to their finances, according to clinical and coaching psychologist and founder of The Positivity Institute, Dr Suzy Green.
"Changing mortgage providers is perceived as a big decision, but people's apathy lies in their inherent belief that it may take them too much time or actually cost them too much in the short-term, which isn't always the truth," she said.
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