Why more Aussies are going online to find information, answers, and support before applying for home loans?
“Buying a home is one the biggest decisions in many people’s lives, so it’s no surprise that the path to purchase is one of the longest in any industry, taking nearly 20 months on average. A lot of people start dreaming about buying property nearly a year before they ever start to research different options.” (thinkwithgoogle.com)
Google tracked an opt/in panel of 341 consumers are 18/80 who plan to apply for a home loan and/or plan to refinance an existing mortgage in the next three months and have at least one connected device. Research results shows that an average time for purchase for property and home loans is 19.7 months. Dreaming and researching such as entertaining the idea of buying property, looking at news, calculating finances, following market news and searching online for properties is average 10.6 months, while getting finance confirmed, actively viewing properties and contacting agents takes average 8.1 months. Aussies spend 70% of their time researching online, 30% of which is spent on mobile.
Regarding to research 40% use loan comparison sites to find the best option for their home loan. Another trend is Aussies’ growing usage of online home loan calculators.
“The role of third party brokers drew particular attention from the Royal Commission, and has been a focus of ASIC from well before the Commission hearings, whit the publication of ASIC’s REP 516: Review of mortgage broker remuneration in March 201. This is an industry we expect will be subject of significant further attention, and possibly regulatory reform, in 2019.” (allens.com.au)
Why brokers are important when looking for a home loan?
“Brokers play a significant role in the mortgage market, with more than 50 per cent of all home loans being written by brokers. The service they provide borrowers of navigating the various mortgage options among a multitude of lenders is valuable, and greatly assists many customers when making a long-term, and significant, financial decision. They also offer a range of related benefits for the market, including acting as conduits to smaller lenders that often do not have substantial, independent distribution networks like the big banks do.” (allens.com)
So why would you not use a loan broker? Benefits of getting a free help of lending specialists by filling only one loan application instead of doing separately several applications to different loan providers by your self, save your time and money. But why, the help of experienced lending specialists is free when using a loan broker?
Allens.com pointed out loan brokers earning model well:
“Loan brokers normally receive upfront and trail commission from the lender when the broker writes a loan. The customer does not pay the broker anything for their service.”
When to start?
If you are considering buying a home, you can start to search options for home loans to get the best offer when you decide to buy. Currently rates are low, what means that it’s a great time to invest.
“The emerging consensus is the rate cuts we’ve experienced this year, alongside the new $15billion tax cuts, will provide a sugar hit for the property market. These rate cuts are the first back-to-back interest rate cuts (in June and July) in Australia in seven years!” (loanmarket.com, 2019)
Find out your options
At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be into touch.
Make your life changing decision and contact us today!
References:
https://www.loanmarket.com.au/news/5-reasons-buyers-are-in-the-drivers-seat-this-winter