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Mortgage rates slip property owners’ minds

By Kevin Kelly

Securing the best mortgage rate isn't just something you need to do when you first buy real estate in Bunbury East, but a regular process. This is the advice of UBank, which revealed findings showing that many people don't know how much interest they're repaying on their home loan.

In fact, only 19 per cent of men and 13 per cent of women were able to recall their exact mortgage interest rate when asked. This marked little change from the 2013 results, showing that people aren't necessarily improving when it comes to getting a grip on their finances.

"It's really surprising to see the number of people who don't know their home loan interest rate as it's one of the most critical numbers in any household, from a financial perspective," said CEO of UBank Lee Hatton.

The findings suggest people are dedicating space in their memory to other important numbers. Almost three-quarters (73 per cent) could recall their parents' phone numbers, while 42 per cent know their bank's BSB.

Knowledge is power

Knowing how much you're repaying on your home loan puts you in a much better position, especially if you go in search of what other deals may be available. After all, there's little point in paying more than you need to, as it can easily mount up over the years.

If you haven't refinanced recently, then there's a possibility there could be a better deal out there. The Reserve Bank of Australia lowered the official cash rate in May 2015, opening up a wider range of affordable products.

It's especially important to look at what's available if you took out a home loan on your real estate in Bunbury East before then, as lenders are generally keen to compete and offer the best deals to customers.

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