UBank's bi-annual Know Your Numbers survey found the majority of non-homeowners (84%) said they need to know more about financial products such as home loans, interest rates and deposits.

The survey of over 1,000 Australians found just over half (51%) of those surveyed admitted to having little to no knowledge about loan-to-value ratios (LVR) or knowing what the term even means (40%).

That number rose to seven in ten (70%) of Gen Z who said they have 'little to no knowledge' about LVRs, more than Baby Boomers (55%) Millennials (46%) and Gen X (42%).

Other financial terms Australians admit to having little to no understanding of include Lenders Mortgage Insurance (41%), offset accounts (38%), and negative gearing (37%). 

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner-occupiers. 

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

UBank CEO Philippa Watson said while there is a clear knowledge gap, the pandemic has encouraged many Australians to become more financially literate.

“Many customers come to us in search of ways to simplify their finances, particularly after the events of the past year,” said Ms Watson.

“One of the ways we can help them is to debunk the very common misconception that finance has to be complicated, because we truly believe every Australian should have the ability to understand and manage their finances.”

On the other hand, three in ten (31%) of Australians say they know a lot about refinancing, with 12% saying they have a 'perfect understanding'.

Additionally, one in four (24%) say they know a lot about comparison rates, while one in ten (10%) have a perfect understanding. 

“We know the appetite for home ownership is continuing to grow, with 56% of Aussies excited about the prospect of owning a home, up 13% since July last year," Ms Watson said.

“But knowledge is key and entering the property market with little to no knowledge of some essential financial terms and concepts could see Australians falling into common traps or getting themselves into situations they cannot manage."

Perhaps unsurprisingly, Baby Boomers are significantly more likely to understand how negative gearing works, with 34% saying they know a lot about it, compared with 25% of Gen X, 18% of Millennials, and 9% of Gen Z.

Photo by Daniel Gonzalez on Unsplash

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