Of course, we don’t live in ‘Dream World’ so a ‘dream mortgage’ may have a range of different features which make it attractive to the potential borrower.
According to new research conducted by insurer QBE, and published in its annual *LMI Barometer, there are a number of factors when it comes to what drives consumers’ behaviour in mortgage selection.
The single biggest consideration is the quoted interest rate, followed quickly by the level of associated fees, low deposit requirement and the availability of an offset account, depending on the type of borrower being targeted.
For first homebuyers, the availability of an offset account was rated higher than the availability of redraw facilities, which is odd given the similarity of both of these features.
Despite the enormous amount of money spent by the lenders on advertising and branding, all segments of respondents (first home buyers, owner occupiers and investors) view brand as the least important factor when choosing a home loan.
And, perhaps reflecting the current global uncertainty, there seems to be a view that the relatively low interest rates will continue. As a result, the least important factor when selecting a mortgage is the ability to fix the interest rate.