Australian consumers are failing to realise that they are “overpaying” their mortgages, according to disruptive mortgage provider Wealthie.
The group’s Latte Index revealed Australians are spending an extra $4,000 on their mortgage, on average, due to the lack of consumer education surrounding efficient loaning strategies.
Wealthie chief executive officer Ashley Playsted said the index comes as the group looks to educate consumers on the value of their everyday spend.
“Aussies love their property. However, when it comes to dealing with large loans, people often find themselves distant from the true value of a dollar,” Mr Playsted said.
“Our Latte Index reminds them that though $4,000 might not seem like much in terms of a mortgage, it is extremely valuable in terms of everyday living expenses.”
Mr Playsted noted that the overspend is nearly a whole month’s disposable income for the average Australian after tax and equal to around two years’ supply of coffee.
“Australians love property and coffee. I thought what better way to illustrate how incremental decisions and smart strategies can save them money – saving it for the more luxurious things in life,” he said.
[Related: Fixed-rate demand continues to decline]