How aware are you of your current mortgage rates? Are you receiving the best deal or is it just convenient? Latest statistics show that Australians don’t know as much as they think they do.
In a recent article supplied by domain it was found through a survey that more than one in three borrowers don’t actually know the interest rate on their own mortgage.
The survey also found that those over 60 and under 30 were most likely to rate themselves as good with money, despite being least likely to know their own interest rate.
People under 30 also tended to believe they were savvier than their friends – with 55 per cent believing they handled their finances better than others. By comparison just 35 per cent of over 60s felt the same.
The key to looking at finances and budgeting is knowledge. This should be offerd in school and made part of the curriculum. How to budget, understanding interest rates and loans or credit cards. I think it is such a scary process these days for young people and it is easy to get caught up in instant car loans, credit cards and even mortgages without too much comparison to other providers.
One would have thought that when investing in a larger portion of money such as a property that there would be a very keen sense of understanding of your financial obligations. Perhaps this is the fault of our education system or is it a parenting flaw?
Either way before you commit to any form of loan or credit card make sure you check the fine print, the rates, is it variable or fixed, is it comparable to other ones on the market.
Click here to read the entire article on domain.