The majority of first-time homebuyers prefer to use brokers rather than their parents when looking at loan options- but less than half would be willing to pay for the service, say new survey results released today.
Mortgage First has published the findings of an online study asking 1,000 first homebuyers looking to purchase in the next two years to reveal their favoured point of contact for home loan assistance.
The majority (26%) of respondents said they would prefer to use a mortgage broker, while 20.3% would use their parents first and 18.2% would go direct to a lender. Other options included web comparisons (11.4%) and financial advisors, (6.9%).
However, less than half (48.9%) would still consider using a broker if they were charged a fee for the service.
Mortgage Choice CEO Michael Russell says it’s good to see today’s first homebuyers value the guidance of a licensed mortgage broker.
“Parents are an excellent starting point for general advice about purchasing a property but with the mortgage market constantly changing, it is crucial that borrowers, particularly those who are less experienced, seek expert assistance to ensure they’re getting a loan suited to their needs.”
However, Russel says, while debate continues to heat-up in the mortgage broking industry about the prospect of charging customers a fee for mortgage brokers’ services, this research points heavily in favour of keeping the service free.