First homebuyers are more likely to turn to a mortgage broker for home loan guidance than their parents, but are less likely to seek such help if they are required to pay for the service, according to the latest market research by Australia’s largest independently-operated mortgage broker, Mortgage Choice.
The study of 1,000 first homebuyers looking to purchase in the next two years found that the majority (26%) of respondents nominated a mortgage broker as their favoured point of contact for home loan assistance.
This compared to one fifth (20%) of first homebuyers who said their parents were their main source of advice, 18% who plan to speak directly to a lender, 11% who sought help from online loan comparison websites and rounding out the top five, 7% were relying on the assistance of a financial planner.
Mortgage Choice Greensborough franchise owner, Hannah Fox said, “It is great to see today’s first homebuyers value the guidance of a licensed mortgage broker. Parents are an excellent starting point for general advice about purchasing a property but with the mortgage market constantly changing, it is crucial that borrowers, particularly those who are less experienced, seek expert assistance to ensure they’re getting a loan suited to their needs.”
“Well informed borrowers who utilise every resource available to help them thoroughly research the property and mortgage markets are more likely to step into the property market sooner.”
That is, assuming the resource doesn’t come at a cost. Having won the popularity vote for being the favourite source of home loan assistance, mortgage brokers were also looked upon very favourably when respondents were asked if they would actually use their services. 55% of first homebuyers said ‘maybe’ and 32% said ‘yes’, they would use a mortgage broker to help them finance their first home purchase.
However, more than half (51%) of these people would not be prepared to do so if they were charged a fee by the mortgage broker.
“While debate continues to heat-up in the mortgage broking industry about the prospect of customers paying a fee for their mortgage broker’s service, Mortgage Choice’s latest research continues to support our decision to not charge homebuyers for our role in helping them to find the right home loan for their needs,” said Hannah.
“Based on Mortgage Choice’s consumer research, conversations with my fellow brokers and the condition of today’s housing finance market, I would like to reassure our customers we are not taking any action on the fee for service front. Our focus is on campaigning for improved consumer awareness of the value and benefits offered by a professional mortgage broker.”