An online bank owned by NAB surveyed 1,031 Australians from 8 to 10 March 2021.
The results from the survey revealed Australians want to buy a home, but they needed more information regarding home loans:
- 44% of non-homeowners are anxious about buying their first home. This includes the 32% who think they cannot afford one.
- 29% of them are currently saving for a house.
- 84% of surveyors said they needed to learn more about home loans, interest rates and deposits.
- 51% of Australians had no knowledge about Loan-to-Value Ratios (LVRs).
- 41% did not understand Lenders Mortgage Insurance (LMI), 38% did not understand offset accounts, and 37% did not understand negative gearing.
Home Loan Experts mortgage brokers are here to help you navigate the world of home finance.
We are experts at helping first-time buyers navigate the confusing home-buying journey so you can get approved for a home loan.
NAB drops investor rates
The major bank dropped its investor rates by 30 basis points to 2.79%.
Property investors welcomed the rate cut as government grants and schemes were steered towards first-home buyers only.
The property investors are returning to a dominant position in the market as the boom is sending prices higher, making it harder for first-time buyers to afford a property.
A study by an international bank in Australia has reinforced this.
The study also revealed that high-net-worth investors in Australia are optimistic about the economy.
For 73% of high-net-worth investors, the impact of a low interest rate on their investment was not of concern to them. They are not focused on generating returns but on preserving their wealth and increasing equity.
Diversifying their portfolio was a top priority for these investors.
On the other end of the spectrum, a report from a consumer advocacy group revealed that more than 55% of Tasmanian households with home loans are facing financial distress.
This comes as the federal government has proposed to remove responsible lending obligations enforced on banks and lenders.
With these obligations, lenders are required to do more to see that their customers can afford their home loan without financial stress.
Mortgage brokers are constantly working in the best interest of their customers as they operate under Best-Interests Duty. This new legal duty does not apply to banks.
Whether you’re a first-home buyer or a seasoned investor, our mortgage brokers are here to help. Call us on 1300 889 743 or enquire online today.