A recent study commissioned by one of the major banks revealed a surprising truth about Australian couples…
They are very willing to discuss intimate details with each other but do not give the same importance to their financial worries.
Despite money being a major source of conflict in 91% of relationships, half of Australians would rather talk about their sex lives than their debt.
Frivolous spending and financial woes are top relationship stressors
The research highlighted that arguments about money often stem from frivolous spending and broader financial challenges.
These disagreements even surpass those about social media, politics or past relationships.
While most Australians recognise the importance of open financial communication for a healthy relationship, a significant number rarely discuss money matters with their partners.
Are you part of the 48%?
The reluctance to talk about money extends to our financial decisions. A surprising 48% of Australian homeowners with mortgages over 10 years have NEVER refinanced their loans. In fact, one third of homeowners don’t even know their current interest rate!
We compare airfares but not home loan rates. Why is that?
It’s interesting how we meticulously compare prices for flights and hotels but neglect to do the same for our mortgages that are often our biggest financial commitment.
Almost 60% of homeowners haven’t asked their bank or broker for a better rate, and a staggering 80% have never discussed strategies for faster loan repayment with their finance professionals.
Why don’t we refinance?
There are several common reasons why homeowners haven’t refinanced:
- Satisfaction with current lender
While loyalty is commendable, it’s important to remember that the financial landscape is constantly changing. What may have been a great deal a few years ago might not be competitive now. - Lack of time
Life gets busy and dealing with paperwork can be daunting. However, a good mortgage broker can handle most of the process for you. - Misconceptions about cost
Exit fees were abolished for loans that originated after 30 June 2011. Even for older loans, a new lender might cover those fees. We can outline any costs associated to refinancing your loan.
Why would you consider refinancing now?
Perhaps to save some household arguments as a start.
But seriously, in the current climate, with major banks offering higher rates than alternative lenders and the RBA hinting at potential rate hikes, refinancing could be a game changer.
A lower interest rate may save you hundreds of dollars each month. This could ease financial stress and put more money back in your pocket.
For example:
If you have the average Australian home loan of $625,800 with a 7.36% interest rate from a major bank, refinancing to a non-major lender at 6.21% could save you $488 per month and a whopping $175,348 over 30 years.
Take the first step towards less financial stress
Open communication and proactive financial management are key to building a secure financial future.
It’s time to break the silence surrounding money and start having those important conversations with your partner.
As your trusted finance team, we are here to help you navigate the complexities of refinancing and find a new loan to suit your needs.
Let’s have an open and honest conversation about your financial goals and how refinancing can help you achieve them.
Call the office today to schedule a free consultation and take the first step towards a brighter financial future.