‘She’ll be right attitude’ costing Aussie mortgage holders long-term

An Aussie man in a cork string hat gives you the thumbs up in front a suburban home. There's a speech bubble coming from his mouth containing a series of emojis that represent the phrase 'Yeah nah, she'll be right'.
'Yeah nah, she'll be right'

New research from Mozo for the 2024 Home Loan Report discovered that a startling percentage of mortgage holders think refinancing isn’t worth the effort when it could save them tens of thousands. 

A nationally representative survey of over 2,550 Australian adults found that 74% of home loan borrowers believe refinancing is too much of a hassle and that it’s easier to just stick with the same provider.

Mozo finance expert, Rachel Wastell, says Australian borrowers are making a poor choice by burying their heads in the sand instead of refinancing.

“Mortgage holders with a she’ll be right attitude could be paying tens of thousands of dollars more in interest than those who switch to a lower rate,” said Wastell. 

It’s a problematic attitude because Mozo also found that those who compare home loans every six months have an average variable rate that is 0.38% lower than those who haven’t compared since getting their home loan. 

How often borrowers compare interest rates
The group’s average variable interest rate 
Estimated monthly repayment on a $500k home loan over 25 years
Every 6 months
6.14% p.a. 
$3,264
Once a year
6.20% p.a.
$3,283
Every 2 years or more 
6.48% p.a.
$3,370
Never since getting their home loan
6.52% p.a.
$3,382

As you can see, borrowers who compare more often typically have a lower interest rate on average. This is because variable rates change frequently, especially when the Reserve Bank of Australia (RBA) plays around with the cash rate. 

Just two years ago, home loan interest rates were at historic lows when the RBA pushed the cash rate down to 0.10% to kickstart Australia’s economic recovery from the pandemic.  

The unusually sharp 4.25% increase in the cash rate since May 2022 would’ve bumped up most people’s rates and repayments considerably – unless they had the foresight (or luck) to get a fixed home loan for a few years. 

While you might look at the $118 per month saving that a 0.38% lower interest rate could get you and think, ‘Geez, what’s the big fuss?’, calculating the world of difference it makes, in the long run, should convince you to take a second look at your rate.

"...a rate difference of less than 1% can equate to five figures in savings..."

The long-term ramifications of paying a higher interest rate 

“Home loans are decades of debt and interest compounds, so a rate difference of less than 1% can equate to five figures in savings over a 25-year loan term,” said Wastell. 

Using a mortgage repayment calculator, we can work out that those who compare interest rates every six months, at a rate of 6.14% p.a., could wind up paying $479,330 in total interest over 25 years. That’s a lot, right? It’s almost the same as the amount they borrowed in the first place. 

Let’s see how it works out for those who haven’t compared rates since getting their home loan, who are charged, on average, 0.38% more… At a rate of 6.52% p.a., the total interest you’ll pay after 25 years is $514,686. That’s an extra $35,356 that goes straight to your lender, instead of towards a deposit on an investment property, or into your superannuation.

Sure, you might have to cover some additional costs when you refinance, such as discharge and valuation fees, but these are typically negligible compared with what you could save on interest over time. 

So, if you’re one of the 74% of Australians who haven’t shopped around for a new home loan since buying your place, take this as a sign to compare refinance rates and see if you can find a cheap home loan that works for you. 

You might find the best home loans have exactly what you’re looking for, or you might want to learn about the different home loan features you’ll encounter during your home loan comparison before you dive in. 

Take a gander at these featured home loans to get started. Do any of these beat your current lender’s offer?

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 20 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.