- New research from Aussie reveals just 33 per cent of home buyers ask for a second opinion on their home loan – even though it’s usually the largest financial commitment in their lives.
- More people seek a second opinion on where to go for dinner or their next holiday destination than on finding the right home loan deal.
- Price, location and type of property are almost twice as important to home buyers than finding the right home loan.
Despite being one of the biggest financial commitments in our lives, new research from Aussie Home Loans reveals that more home buyers ask for a second opinion on where to go for dinner (38 per cent), their next holiday destination (36 per cent) or which car to buy (45 per cent) than what home loan to choose (33 per cent).
According to the survey¹ of more than 1,300 home buyers, finding the right home loan is equally low on the priority list, with only 36 per cent of home buyers saying they would prioritise finding the right home loan or shopping around for the lowest rate (34 per cent). Home buyers were much more likely to prioritise:
- The price of the property (73 per cent);
- Location, i.e. specific suburb (65 per cent);
- Type of property (62 per cent);
- Size of property (54 per cent);
- Close to amenities (51 per cent); and
- Has a backyard (39 per cent).
Executive Chairman of Aussie, Mr John Symond AM, says that while finding the right property is important, finding the right home loan should be just as important. It is after all a big commitment to make, with the average home loan taken out by Aussie customers in December worth over $380,000.
“It’s definitely worthwhile to see what your bank can offer you, but it could save you literally thousands of dollars to get an expert second opinion. Think about all the things in life that you get a second opinion on. It just makes sense to double check that you’ve got the right deal, even if you have already spoken to your bank,” he said.
“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,” added Mr Symond.
With consumers today generally more satisfied with their main financial institution (MFI) than ever before, one third (35 per cent) of home buyers believe it is important to get a home loan from their MFI.
Of these, almost half (47 per cent) are willing to pay an extra $76.77 on average per month to stay with their current bank, or $921.18 annually; with men more willing to pay top dollar at $96.76 extra on average per month; $40 more than women ($56.85).
“When you think about how big a financial commitment a home loan is and how much you end up paying over the life of your loan, it’s surprising that some home buyers are willing to pay more than they need to.
“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,” he concluded.
To find out how much an expert second opinion from Aussie could save you, book your free appointment now by calling 13 13 33 or visit www.aussie.com.au.