Finding the right home loan is low on the priority list for Australian home buyers, according to a new survey conducted by Aussie Home Loans
The survey of more than 1,300 home buyers found that only 36% said they would prioritise finding the right home loan or shopping around for the lowest rate (34%). The highest priorities for Australian home buyers were the price of the property (73%), location (65%), type of property (62%) and the size of the property (54%).
Executive chairman of Aussie John Symond said these results are a “concern”. With the average home loan taken out by Aussie customers in December worth over $380,000, consumers need to understand the importance of finding the right loan.
“A home loan is one of the biggest financial commitments we make in our lives, so to see it sitting so low down on the priority list is a concern. Even saving just a little bit on your interest rate can add up to a lot of money saved over the life of a home loan, so a second opinion really should be at the top of every savvy home buyer’s priority list,” he said.
The survey also found that one third of home buyers believe it is more important to get a home loan from their main financial institution than to go to a broker. Of these, almost half (47%) are willing to pay an extra $76.77 on average per month to stay with their current bank.
Symonds said it is “surprising” to see that consumers are willing to pay more than they need to, especially when the savings they can get from seeing a broker are significant.
“We have customers who have been able to add a new kitchen, send their daughter to private school or take the family on an overseas holiday because of the money we have saved them, and that’s when the savings really count.”