New research* from Aussie Home Loans shows that first home buyers (30 per cent) are the largest group of consumers considering taking out a home loan over the next year, followed by refinancers (25 per cent), investors (24 per cent) and movers (22 per cent).
CEO of Aussie, Mr James Symond, says the findings are backed by the mortgage brokers’ customer data, which also shows a strong uplift in first home buyer activity.
“Year-on-year we’ve had a 55 per cent increase nationally in the number of first home buyers using an Aussie Broker. This is a hugely positive sign and shows savvy newcomers to the market are seeking out expert mortgage advice and guidance.
“I believe the return of first home buyers has been prompted by a number of different influences. The slight cooling of some of our larger property markets, current record-low interest rates, growing choice and complexity in home loans and improved first home buyer grant schemes would all be factors,” he said.
First home buyers lack knowledge; need time and support
The research also showed first time buyers feel they lack knowledge about home loans and don’t have the confidence to compare and select the right home loan. They were also the least confident about the current economic climate.
“Our data shows that first home buyers take the longest to settle a home loan – on average about 100 days. This is around 35 per cent longer than someone refinancing their home. We know first home buyers often need more education and support so they can feel confident in selecting the right home loan, and that’s what Aussie provides.
“Aussie Brokers are trained to help new borrowers in the way they want. Some first time buyers want to be educated steadily and taken through the mortgage process step by step, while others want to outsource as much as possible so it’s quick, easy and requires little of their time,” Symond added.
“Aussie Brokers are providing more support than ever for first home buyers, working with them over time to help them achieve their goal of home ownership. Saving customers money, time and hassle are key elements of Aussie’s proposition and I believe this is why we’re seeing such strong growth in first home buyer activity,” Symond concluded.
To make a free appointment with your local Aussie Broker, visit www.aussie.com.au or call 13 13 33.
*The survey was conducted by TNS among 600 Australians aged 24-55 years, who plan to take out a home loan in the next 12 months. Nationally representative, fieldwork was completed in December 2017 via an online research panel.