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The $1,300-a-year mistake Aussie homeowners are making

Aussies are wasting billions on sub-optimal home loans. Source: Getty
Aussies are wasting billions on sub-optimal home loans. Source: Getty

If you think household waste can be put down to just excess plastic or mouldy vegetables, you’re mistaken.

Household waste can even mean financial waste - on the wrong home loan.

Aussies are wasting billions on sub-optimal home loans, new research shows, and it’s hitting those of us in New South Wales and Victoria the hardest.

In fact, NSW homeowners are wasting over $1.3 billion on unnecessary interest, while Victorians are wasting $1.01 billion, and Queenslanders come in third at $730 million annually.

Uno’s Household Financial Waste report found that over half of all homeowners don’t even know what their current interest rate.

Around 59 per cent of homeowners have never asked their bank or broker for a better rate on their home loan, and a whopping 78 pr cent have never even had a conversation about strategies for paying off their home loan faster.

How much could I save on switching my home loan?

According to Uno, consumers in NSW stand to gain $1,300 back in lower interest payments in the first year, if they switch to a better home loan.

Those in Victoria stand to gain around $1,200, while those in the ACT and the Northern Territory could gain over $1,000 if they just shopped around for a better deal.

Top 10 worst suburbs for home loan waste

Households in Sydney’s western suburbs like Liverpool have the highest rate of home loan waste, throwing away around $14.9 million each year.

Here they are:

  • Liverpool area (NSW)

  • Westmead area (NSW)

  • Campbelltown area (NSW)

  • Central Coast (NSW)

  • South Coast (NSW)

  • Werribee area (VIC)

  • Melbourne (VIC)

  • Cranbourne area (VIC)

  • Truganina area (VIC)

  • Craigieburn area (VIC)

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