The top reason borrowers choose to use mortgage brokers when selecting a home loan is to save time and energy, according to survey results released this week.
Mortgage Choice’s National Consumer Sentiment survey found that 65% of consumers plan to use a mortgage broker in the future, with the top three reasons being:
“Mortgage brokers save me from researching a range of lenders and loans myself;”
“Professional mortgage brokers are experts in mortgage products;” and
“Have had a good experience with a mortgage broker before”
The survey also asked participants whether they were likely to buy property in 2013, with almost one quarter (23%) replying that they do – so long as interest rates continue on a downward trend.
That number increases to 39% of respondents who plan to buy in the next two years and, of these, almost a third (30%) will be first homebuyers, 25% will be looking to buy their next home and 45% will be investors.
Mortgage Choice head of corporate affairs, Belinda Williamson, says Australians are tightening their belts in 2013, but that investor confidence is very good news.
“With interest rates the lowest they have been for some time and property prices remaining subdued in parts of the country, it is clear from the research that many investors feel that this presents a good buying environment.”
Roughly half (47%) of respondents said they don’t think the federal government is doing enough to encourage affordable housing, 26% said it’s doing nothing, 16% were undecided, 10% think it’s doing enough and 1% feel the government is doing everything it can to encourage affordability.
Looking forward, 34% of respondents believe Australian property prices will increase in 2013, 16% think they’ll decrease and 34% believe prices will remain stable - 16% weren’t sure.
Finally, almost half (45%) of current mortgage holders will consider switching to a fixed term loan when lenders’ fixed rates fall below 5%.