Bank customers who round up $50 in loose change every month could potentially slash 19 months off their mortgage
ING has launched a new digital tool to help anxious Aussies pay off their home loans earlier.
Based on its research, ING revealed that 51% of Aussie home loan holders fear they’ll never be able to settle their loan, and 40% are worried they’ll have to continue paying their mortgage in retirement.
The research also found that Aussies are so keen to remain a step ahead of their home loan repayments that 82% are paying down more than what’s needed most years, and 45% expect to settle their mortgage at least five years earlier.
The digital tool called, “Everyday Round Up for Home Loans”, enables ING customers “to round up the loose change from their card purchases to pay down their ING mortgage”. With the tool, card purchases made through ING’s Orange Everyday account get rounded to the nearest $1 or $5. The extra amount then automatically shifts from the customer’s Orange Everyday account to pay down the mortgage.
“Everyday Round Up for Home Loans is about helping our customers to stay a step ahead by enabling them to use their small change to pay off their biggest purchase – their home,” ING head of retail banking Melanie Evans said in a statement.
“We launched Everyday Round Up a year ago to help Aussies round up their loose change into a savings account where it would earn interest. In less than a year we’ve helped over 160,000 customers collectively save $32 million.”
ING reckons that customers who round up $50 every month to their 30-year owner occupier Mortgage Simplifier mortgage of $350,000 can potentially slash 19 months and save $14,000 in interest with their loose change.