Australian homeowners don't understand their mortgage home loans

Almost three quarters of Australians say they are unhappy with their home loan and don't fully understand the paperwork, an online survey says.

And even though they could save as much as $60,000 on an average-size mortgage by shopping around for a better deal, most don't - either through apathy or a lack of understanding.

Mortgage lender Myrate.com.au found 77 per cent of the 1100 people it questioned last month felt unhappy or confused with their home loan.

"The survey found an overwhelming majority of Australians were not happy with their home loan and admit to feeling miserable, confused and downtrodden as a result," the company said.

However, only 38 per cent were prepared to shop around for a cheaper deal.

The survey also found that 71 per cent of respondents would rather drive out of their way to get cheaper petrol than investigate ways to obtain a less expensive home loan.

"For many Australians, the idea of saving money on petrol is an easy equation - it's laid out in front of you in black and white, whereas the perception of refinancing your home loan in order to get a better deal seems far too daunting," said Myrate.com.au general manager Kevin Sherman.

"We try to encourage people to pull out their home loan paperwork and look at their personal circumstances to make sure their home loan is still appropriate for them."

Mr Sherman said a person could save as much as $60,000 on a $300,000 home loan if they shopped around.

"To get your initial home loan, it feels like a lot of work. Most people think a home loan is the same across the board, but the deals are very different."

Mr Sherman said the failure of people to check whether they had the best home loan situation was a combination of apathy and a lack of understanding.

"People put it in the too hard basket," he said.

"A home loan can be the biggest financial investment many people will make in their lifetime, so it's important they check their home loan on an annual basis to ensure they're getting the best deal."

SOURCE: AAP