First home buyers take top loan share

New research has shown that first home buyers are the largest group of consumers considering taking out a home loan over the next year.

A survey by Aussie Home Loans showed the group made up 30% of its consumers, followed by refinancers taking up 25%. Investors and movers made up 24% and 22% respectively.

The company has seen growing numbers of first home buyers as they continue to look for help and support for their first home loan.

CEO of Aussie, James Symond, said, “Year-on-year we’ve had a 55% 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.”

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.

Symond added, “Our data shows that first home buyers take the longest to settle a home loan, on average about 100 days. This is around 35% 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.

“Some first time buyers want to be educated steadily and taken through the mortgage process step by step. Others want to outsource as much as possible so it’s quick, easy and requires little of their time.”

From Australian Broker

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