Most homeowners are missing out on the full benefits of record low interest rates by failing to refinance their mortgage, financial services veteran Mark Bouris says.
A survey of 1,000 Australians who took out a home loan more than two years ago shows almost half have never changed the terms of their mortgage.
A further 25 per cent had not refinanced since interest rates began to fall almost four years ago, according to Mr Bouris' financial services firm Yellow Brick Road.
The Reserve Bank's cash rate has fallen from 4.75 per cent in October 2011 to a record low of two per cent this month.
Variable home loan interest rates have also hit record lows, with the standard rates offered by the big four banks dropping from around 7.8 per cent in 2011 to roughly 5.4 per cent.
There are also different loans, and smaller lenders, that offer even lower rates.
Given the potential savings on offer, it is hard to believe so many people are not acting, Mr Bouris said.
"You're just handing the banks extra money," he said.
"Many people take the time to drive to the cheaper grocery store just so they don't pay an extra dollar for milk, yet when it comes to home loans they stick their head in the sand."
The top three reasons given to Yellow Brick Road for not altering the terms of a mortgage were the belief it would not save much money, a feeling that fees and charges would outweigh savings, and that the process is too much of a hassle.
But Mr Bouris said the savings available far outweigh any fees and charges, with the potential to pay $30,600 less interest on an average $350,000 loan with 25 years remaining on current rates.
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