An increased number of mortgage borrowers in Australia are becoming aware of the interest rate attached to their home loan, a new report reveals.
Last year, just one in three property buyers down under said they knew how much interest they were expected to pay on their mortgage, according to research carried out by LoanDolphin.
However, 12 months on, further research from the lender has found that two in three are now aware of how much extra they will be expected to repay on their home loan, demonstrating growing awareness across the property-buying market.
Awareness has particularly increased among 25 to 34-year-olds; in 2016, just 30 per cent of borrowers in this age bracket knew their mortgage interest rates, but this has now risen to 70 per cent.
Ranin Mendis, co-founder and chief executive officer of LoanDolphin, explained that these growing awareness levels are most likely due to a recent spike in interest rate moves, which have been particularly prevalent among interest-only and investment loans.
Interest rates set by the Reserve Bank of Australia had fallen consistently since 2011, leading many borrowers to feel falsely secure. More recently, however, they have risen sharply, resulting in more owner-occupiers actively finding out more about their own mortgage interest rates.
As a result, more property investors and regular home buyers have been spurred to learn more about their interest rates and find out exactly how much they will be required to repay to their lender throughout their agreed repayment period.
In turn, this has led to more borrowers challenging their lenders for better deals, which Mr Mendis says is the right approach to take.
Speaking to news.com.au, he explained: "Sometimes consumers have this 'set and forget' mentality - they feel what they are currently given by their bank or broker is probably a good rate and don't want to go through the hassle of comparing and shopping around. Don't settle for what was given to you."
