Home topics news News News Australians financially ignorant says lender David Olsen April 6, 2010 Despite todays rate rise and being saturated with financial advice, Australians are not prepared and no more financially savvy than before, according to a report by leading direct lender MyRate.com.au. Home loan specialist Kevin Sherman from MyRate.com.au says Australians should act now to avoid being trapped “There have been warnings that the RBA will continue to increase rates and Australia’s are simply not prepared.” “We have seen it happen before, interest rates rise, borrowers can’t meet their repayments so are forced to sell their homes. But many Australians could also find themselves in the same situation, so property prices could drop, leaving those with home loans in a negative equity position. They can’t sell, but they can’t keep repaying either.” The report summarises the results of a financial knowledge test conducted by 7000 Australians with the analysis showing Aussies have come up short in the money know-how “Australians haven’t learnt anything from the GFC and are still confused over important financial issues like compound interest, equity and credit ratings.” Most alarmingly, the report shows almost 40% of borrowers still think you can get a home loan without a steady income. One in five Australians (20%) still don’t think they need to tell their lender about their credit history, while one in three (30%) don’t understand that having a big credit card limit can affect their lending limit. “If applicants have a big credit card limit