Do you understand these basic mortgage concepts?
41 per cent of the Australians surveyed by ME Bank recently about home loans said they are confident that they understand the mortgage market. However, 42 per cent were unable to state the current RBA official cash rate (two per cent).
55 per cent do not know what an offset facility does. 40 per cent do not understand redraw. 38 per cent do not know what interest only repayments are about and 26 per cent have no understanding of extra repayments.
Source: The New Daily