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After a year of record interest rate hikes and continuing cost of living increases including food, petrol, utilities and other bills hitting the hip pocket hard, Australians are currently experiencing high financial pressure. But according to Compare Club’s annual analysis of the million+ Aussies who use the site each year to look for a better deal, Australians could offset the effects of the rising cost of living and save up to $7,388 per year by reviewing their current insurance policies (health and life), home loan, energy provider, credit cards and car loan. The annual savings figure is higher than the figure reported by Compare Club in 2022, when they last undertook a similar analysis, which revealed that customers could save $6,622 over the course of 12 months.
The average Australian household could save $2,606* on their home loan repayments by switching their lender. Customers with a car loan could save around $2,600** by refinancing, while there’s around $713*** to be saved on credit card interest repayments annually. There are more savings to be made: ● Energy bills: up to $274 in NSW, $321 in QLD, $183 in VIC**** ● Health Insurance: an average of $300*****, while families stand to save an average of $375. ● Life insurance: could save an average of $587******
Compare Club CEO Andrew Davis says these kinds of savings are what Australians are missing out on when they stay loyal to lenders and service providers instead of shopping around for a better deal. “With so many costs going up over the past year, we’re seeing a lot of Australian households increasingly squeezed when it comes to finances, but they’re also able to get a significant reprieve when they switch a major expense such as their mortgage, car loan or health insurance.” “It can seem quite daunting, especially for complicated products such as health cover or a home loan, so it’s understandable that some people feel the effort to switch just isn’t worth it. But we often find people are genuinely surprised by how much they can save and how simple it can be.”
“It doesn’t have to be an arduous task. Without realising the potential savings, Australians are missing out on thousands of dollars a year - it’s enough to cover school laptops for two or three kids. There are also the benefits of improved product features, chosen to be relevant to the lives of customers now, rather than when they originally purchased the product ." “With a record ten interest rate hikes in a row - and more predicted - simple switches can be a really big help for the household budget.” Davis recommends looking at the biggest savings first.
“You don’t have to overhaul all your finances in one sitting, but there are serious savings to be made even by just reviewing your home loan,” he said. “How much the cost of loans, energy and insurance will increase over the coming months is somewhat unpredictable but every household has the power to be able to seriously cut their costs with just a few phone calls”, said Davis. For more information visit compareclub.com.au
NOTES TO FOR ABOVE * Based on average Australian mortgage stats from the ABS, average variable rate from the RBA and a drop of 0.6% on a 25-year $600k, principal & interest no fee mortgage
** Based on average savings from car owners who refinance through Car Clarity Sept 2022 - Mar 2023
*** Based on a 0% interest & fee 32 month balance transfer switch on the average credit card debt, minimum repayments on interest occurring debt, and RBA’s average credit card rate **** Based on difference between cheapest electricity provider on Compare Club’s panel of retailers and DMO in each state, and depending on provider
***** Based on 136,746 customers who switched using Compare Club services between Jan 2018 and December 2022.
****** Based on average savings between a 45-year old office worker in NSW with no underlying health conditions who smokes and the same customer, but as a non-smoker.
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