Millions of Australians are in the dark about the cash rate despite it hitting a record low of 1% in July.
Among the 1,002 survey respondents, 86% or 16.7 million Aussies are unaware of the new rate despite the country’s $1.7bn household mortgage debt.
In a statement, Finder money expert Bessie Hassan said knowing the cash rate is crucial to anyone who wants to get ahead of their mortgage. “Even the smallest change to the cash rate can end up saving you tens of thousands of dollars over the life of your loan,” she said.
“If borrowers fail to keep tabs on cash rate movements, they could be missing out on a golden opportunity to save big money by either negotiating a better rate or looking elsewhere.”
The research found that 56% of Aussies think the cash rate is higher than where it is currently at, with 13% assuming it to be between 5% and 10%, and 30% believing it to be lower than it is. Merely 10% of women and 18% of men know the correct cash rate.
Economic ignorance is costing Australians, according to Hassan. “Keeping informed means knowing which direction rates are going. Next step is knowing how this impacts the interest on your mortgage,” she said.
“Take a look at your current interest rate and compare it to what’s being offered across the board. If it isn’t up to scratch, it may be time to refinance.”