Majority of borrowers fear permanent mortgage burden

A new research from ING involving a survey of 1,038 mortgage holders has revealed that 51 per cent fear they will never be able to pay off their home loan, while 40 per cent are concerned they will carry their mortgage into retirement.

The research also found that 82 per cent of borrowers are paying down more than what’s required most years, with 45 per cent expecting to pay off their mortgage at least five years prematurely.

ING launches digital mortgage tool

The research follows the launch of ING’s Everyday Round Up for Home Loans, a digital tool that enables ING customers to round up change from their card purchases to pay down their ING mortgage.

Card purchases made through ING’s Orange Everyday account are rounded up to the nearest $1 or $5, with the extra amount automatically transferred to pay down the borrower’s 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’s head of retail banking, Melanie Evans, said.

“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 said that it estimates that customers who round up $50 each month to their 30 year owner-occupier Mortgage Simplifier home loan of $350,000 could shave 19 months or save $14,000 in interest by using their tool, assuming that a customer puts down a 20 per cent deposit and makes principal and interest repayments.

[Related: Over half of Aussies ‘burdened’ by their mortgage]