Invest
Non-major finds worrying dips in mortgage knowledge
Findings released from Gateway Bank today reveal that many Australians are not confident when it comes to key mortgage terminology.
Non-major finds worrying dips in mortgage knowledge
Findings released from Gateway Bank today reveal that many Australians are not confident when it comes to key mortgage terminology.

According to Gateway Banks' 2018 Mortgage Holders’ Sentiment Report, overall understanding of common home loan terms is down from 2017. Around half of respondents to the annual report indicated they were aware of the terms redraw facility (down 4 per cent to 56 per cent this year), home loan insurance (55 per cent) and offset account (down to 53 per cent from 56 per cent in 2017).
The most significant decline was in Australian mortgage holders grasping the difference between a comparison rate and an interest rate. Just 31 per cent of those surveyed were aware of the term, down from 36 per cent in 2017.
There was also a dip in the number of people with an understanding of the terms lenders mortgage insurance (40 per cent), loan to value ratio (26 per cent) and portability (20 per cent).
The only area where knowledge improved was in an awareness of split home loans, which saw a 1 per cent increase to 34 per cent of mortgage holders understanding the term.

The survey also found that many home loan holders did not know features of their current mortgage. This included 40 per cent of mortgage holders being unaware if their home loan offered splits, 17 per cent lacking an understanding of whether they had access to a redraw facility and 19 per cent not knowing if their current home loan offered an offset account.
Overall, financial literacy levels in men were better than in women across all terminology.
Paul Thomas, CEO of Gateway Bank, said he was concerned Australians were missing out on finding and utilising the best deals and packages the market has to offer.
“As with any purchasing decision, meticulous research and awareness is required if you’re to nab the best deals for your particular circumstances. People will invest hours or days of research into purchasing a television or a computer, and the same amount of interest and time investment needs to be implemented when making one of the largest purchasing decisions of any one’s lives,” he said.
Mr Thomas said the onus was on the home lending sector to ensuring financial literacy and education are promoted throughout the home loan process.
“Banks and brokers alike need to make it a priority to ensure that clients and members are given the resources and support needed to ensure they have a high level of understanding of the inclusions, exclusions and terms associated with their mortgages,” he said.

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more