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According to a recent survey, over 77% Australians consider themselves to be ‘money smart’, with almost 80 percent of those under 30 and over 80 years of age smug about being ‘financial savvy’. 1,040 Australians participated in the survey where more than 50 percent respondents under 30 years of age considered themselves to be ‘a lot smarter’ than their peers when it came to money.

 
Overwhelmed man, finance and mortgage decisions
 

But what does it mean to be financially savvy or money smart? Is it about living off a budget or having an emergency fund or owning your own abode in addition to making investments?
According to the survey, more than half of the ‘money smart’ Australians claimed to review their finances regularly. Besides, 68 percent of those who are ‘money smart’ researched financial options online before making any decisions with their hard-earned money.

Talking of the financially savvy lot, 90 percent believed in the power of a household budget while over 70 percent were exceptionally responsible with their credit cards – ensuring they do not take on more credit than they could handle and paid their bills in full each month.


Financial literacy in Australia

According to a recent report by ASIC, 48% Australians think “dealing with money is stressful and overwhelming”. Despite that, 62% claim to save regularly while 33% like to spend first and save second. Interestingly, 90% of adults say they are capable of budgeting but 48% say they do not budget regularly for their daily expenses. In fact, 17% think they don’t have enough to get by in case of a financial emergency.

Considering we are a nation with over 70 percent ‘money smart’ population, the above stats seem to be confusing. In fact, in the same survey where 77 percent Australians considered themselves to be money smart, 38 percent of those surveyed who had a mortgage didn’t know the interest rate on their mortgage.

In an age where technology has brought everything on our fingertips, what could be the reason for such ignorance, one may wonder. Well, too much choice seems to be one of the reasons confounding home buyers in Australia. Yes, 37 percent Australians found deciding between too many options to be an impediment to being financially savvy.


Mortgage brokers to the rescue

Gone are the times when the big four banks ruled the mortgage market. Today, due to increasing competition, many small banks and non-bank lenders have jumped into the foray, offering competitive home loan deals and a plethora of features that could save home buyers thousands of precious dollars. However, for an average person who is buying a home for the first time, it is easy to be confused with complicated financial jargon and many good and ‘not so good’ home loan products flooding the market. This is exactly the reason why it is crucial to have an expert by your side when you go mortgage hunting. Yet, many people are hesitant of working with a mortgage broker.

According to the previously mentioned survey, more than 70 percent Australians who sought professional financial advice said they benefited from the advice.

Unlike any single lender, a mortgage broker has access to financial products from several lenders apart from years of experience they share freely with their clients. Brokers are known to provide individual attention to each of their clients, suggesting loans most suitable for their financial needs. Besides, in special cases, such as bad debt loans, low doc loans, investor refinancing, etc., an expert’s guidance can increase your chances of approval as well as ensure maximum savings.

If you are planning to buy a home or refinance an existing mortgage, you can have your home loan queries answered online by experts, here. At HashChing, we bring you broker pre-negotiated home loan deals from over 60 lenders across Australia, updated every week. Compare home loans online to get the most competitive home loan rates in the market.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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