Despite being one of the biggest financial commitments in our lives, our research revealed that most Aussie home buyers DON’T get a second opinion on their mortgage. So what are we seeking opinions on instead?
Before I started working for Aussie, I was probably like many Australians in that I didn’t know a lot about home loans. Sure, I knew a bit, but only because I had bought a property with my sister in 2011. But I didn’t know much.
When we decided to buy, we looked at what our bank would offer us and then called a mortgage broker to see what deal they could get for us – and we ended up getting our loan through a mortgage broker.
But it seems that by getting a second opinion on a home loan we were actually in the minority of Aussie home buyers, which surprised me.
Aussie’s survey of 1,300 home buyers revealed that a home loan sits well down on the list of things they generally get a second opinion on. In fact, more home buyers ask for a second opinion on where to go for dinner (38%) or their next holiday destination (36%) than what home loan to choose (33%).
The top 10 things home buyers seek a second opinion on:
- A car
- The property you’re planning to buy
- The suburb where you’re planning to buy a property
- Where to go for dinner
- Your next holiday destination
- Home loan
- Seeing a movie
- Investing in shares
- Taking a new job
- An item of clothing (e.g. shoes)
When you think how big (and long) a commitment to a home loan is and how much you end up paying over the life of your loan, it surprised me that more people aren’t making sure they have the best deal they can possibly get, especially when it doesn’t cost anything to get a second opinion from a mortgage broker.
We also asked home buyers what they are likely to prioritise when buying property, and finding the right home loan was low down on the priority list. Only 36% of home buyers said they would prioritise finding the right home loan or shopping around for the lowest rate (34%).
The top 10 things home buyers prioritise when buying property:
- The price of the property
- Location, i.e. specific suburb
- Type of property
- Size of property
- Close to amenities
- Has a backyard
- Finding the home loan that’s right for me
- Shopping around for the lowest rate on my home loan
- Located in an up and coming suburb/town
- Requires little renovation
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. That’s a lot of money to gamble on only one opinion.
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, for example saving just $50 per month on the average sized 30 year home loan will save you $18,000. Think about the holidays you could have with that money!
Did you get a second opinion on your home loan? How much did it save you, and what did you spend the savings on?
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