|A large number of Australian homeowners plan to pay off their mortgage sooner than specified in the terms of their loan, the latest mortgage industry survey in that market has established. |
Findings from the Australia-wide MIAA/BankWest Home Finance Survey show 86 percent of respondents are interested in paying off their mortgage quickly and the same amount are confident in their abilities to do so.
“Our research shows that Australian homeowners are becoming more confident in taking control of their finances, despite general concerns such as rising interest rates and job security,” said MIAA Chief Executive Officer, Phil Naylor.
Naylor said eight in ten respondents said they would pay off their mortgage sooner by making higher regular repayments or lump sum payments, while only two in ten said they would make more frequent repayments. Women showed a higher interest than men in paying off their mortgages sooner.
BankWest Head of Broker Sales, Phil Colton, said the research findings were consistent with the behaviour of BankWest's customers who are increasingly refinancing their home loans to suit their changing needs.
“The trend we’ve noticed among our customers is reflected in the survey findings, which show more than half of those with a mortgage have renegotiated their home loan in the past five years and have benefited from the move.
“Consumers are becoming more proactive in finding the right loan, and are more willing to take out a new loan if they find a product that gives them more financial power to do things like pay off the mortgage quicker.”
Naylor said: “Consumers are gaining greater awareness of the products and opportunities available to them, with more now using the services of mortgage brokers. It’s no surprise that they are confident in making their finances work for them.”