71% of first home buyers wish for more support choosing their home loan
Aussies say taking out a home loan is a process shrouded in mystery for many first home buyers, and 71% would like more help choosing a loan, according to the latest research by mortgage broker Mortgage Choice. An independent survey conducted by CoreData on behalf of Mortgage Choice, found that across all the stages of a buying a home, applying for a loan is the aspect where first home buyers (49%) are most likely to need the support of others.
One in two (57%) first home buyers report being ‘highly’ or ‘reasonably’ confident that they understand the home loan features best suited to their needs, however one in three (32%) have ‘minimal’ confidence. However more than one in ten (11%) have no confidence at all in their ability to distinguish which home loan is right for them.
The top five challenges first home buyers identified in securing a home loan include:
- 47% Understanding how the whole process works
- 46% Making sure they are getting the best deal possible
- 45% Making sure they qualify for the loan amount and property they want to buy
- 41% Establishing what they can afford to comfortably pay back
- 37% Understanding what (if any) government support they qualify for.
Unsurprisingly, 71% of first home buyers say they wish they had more support to make decisions around choosing their first home loan. Among these first homeowners, 39% rank ‘someone to help guide me through’ as the top source of support they wish they had, 26% just want someone to help build their knowledge and confidence.
“Home loan interest rates are at historic lows, which is great news for first home buyers. But the research suggests that the biggest challenge many first home buyers face right now, is not financial – rather it’s uncertainty about how the buying process works," Susan Mitchell, CEO of Mortgage Choice, said.
When it comes to seeking support, the survey found one in two (50%) first home buyers rely on family, friends and work colleagues, 46% turn to a mortgage broker, and 36% rely on online information.
