YELLOW BRICK ROAD HOLDINGS LTD 
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Yellow Brick Road has announced a new campaign to help bust the myths that confuse consumers into making misguided decisions about their biggest financial commitment - their home loan.
The campaign, which was featured on Channel 9's "A Current Affair", was conceived from a Yellow Brick Road survey showing that nearly half of educated, hardworking Australians confessed to feeling confused and embarrassed about their financial situation.
Research compiled from Australian consumers aged 30-49 in the major cities found that nearly 49% of individuals claimed they didn't speak to a professional about their financial affairs because they found it to be too complex and didn't have the confidence to have a conversation about their finances. The research also revealed that 73% of respondents identified "trust" as the number one factor in making the decision to work with a financial services professional.
"The finance industry is very good at using confusion to their advantage," says Yellow Brick Road Executive Chairman Mark Bouris. "In the consumer's eyes, they might visit their bank, thinking that their loyalty is going to get them the best possible home loan rate, or they might be attracted to a lender advertising a discount, oblivious to the fact that the offer might not suit their needs. That's why we have created this myth busting campaign, to shine some light on the truth and put the power back in consumer's hands."
Yellow Brick Road has debunked 30 popular myths, and has created an e-book to help consumers educate themselves against the popular misconceptions that plague the market.
"What we're advocating is choice and transparency," says Bouris. "We would rather have an educated customer who comes into one of our branches with a good idea of what's already in the market. They know what features are important to them and they want to find a loan that's going to work for them in the long run. We want to help them to get a better understanding of how the system works, which is why this campaign is so important for hardworking Australians."
For example, many people think that it's not worth refinancing to an interest rate only half a percent lower than their current rate. What most people don't realise is that even a half percent could equate to tens of thousands of dollars in savings. As an example, the difference between a $350,000, 30-year variable rate loan at 4.74% compared to 5.24% is a savings of over $107 every month and nearly $38,500 over the life of the loan.
Another myth is that there is no difference if you make your repayments monthly or fortnightly. The truth is that because there are more than four weeks in a month, making fortnightly payments can actually get you well ahead. On an average $350,000, 30-year loan
on a 4.74% interest rate, making fortnightly payments instead of monthly payments would chop out over $53,000 in interest payments and nearly five years off the loan term.
These myths and 28 others have been busted in Yellow Brick Road's e-book, available online at www.ybr.com.au/myths. Mortgage holders can also check how much they can save by using the Yellow Brick Road online savings calculator.
For more information, contact:
Chelsea O'Donnell
Head of Marketing & Communications Yellow Brick Road Wealth Management T 02 8226 8202
M 0414 704 033
E Chelsea.ODonnell@ybr.com.au
Yellow Brick Road is a group of wealth management and financial services companies headed by Executive Chairman Mark Bouris. Yellow Brick Road offers tailored advice and services to Australians wanting to build financial security for the future. With its extensive neighbourhood based branch network, Yellow Brick Road is committed to delivering accessibility, quality financial advice and competition in the market. For more information visit www.ybr.com.au
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