Lazy $9.9bn cost as baby boomer borrowers most loyal to the lender: finder.com.au

Borrowers are being encouraged to take advantage of some of the lowest home loan rates in history by shopping around, following a survey by comparison website, finder.com.au, which found about two in five mortgage holders.

It found 39% of borrowers have not switched providers in the past decade – an estimated 1.17 million households.

"By not switching home loans or asking for a discount with their current lender, these households are potentially wasting a combined $27.4 million per month, $328.2 million per year or a staggering $9.9 billion over 30 years," finder.com.au consumer advocate, Bessie Hassan said.

She said she was surprised by the complacency of many borrowers.

The survey of 1,351 respondents also found that just 6% of Australians are currently considering switching providers, while just 21% have switched for a better deal within the last five years.

More than half of these borrowers (54%) are content with their lender, while almost one in four (24 percent) hadn’t switched because they couldn’t find the time for all the paperwork.

One in 10 found it too hard to compare products and 13% think it would cost too much.

Comparing generations, Gen Y (18-34 year-olds) were the most savvy, more likely to have switched home loans than any other age group, while Baby Boomers (aged 55-74) were the most loyal to their lender.

Refinanced loans represent 34% of all home loans financed, according to the Australian Bureau of Statistics Housing Finance data analysed by finder.com.au.

"That figure has fluctuated between 31 and 34% since the credit reforms were introduced in July 2012, which made it easier for variable rate borrowers to switch providers," Bessie Hassan said.