80% of buyers fed up with out-of-date mortgages
Australia’s recent five-year property boom has set a precedent for home buyers to act with more immediacy, which has led 85 per cent of Aussies to admit the mortgage industry is lagging and needs to innovate to keep up with the pace of the property transaction market, a new survey has found.
The survey was commissioned by lending platform Tic:Toc, and conducted by data company Pureprofile. It profiled a nationally representative, independent panel of 1,000 Australians who purchased property in the last three years.
The research set out to understand the disconnect between property and mortgage transactions, and asked respondents about their property purchase experiences – or the experiences of their family, friends or relatives who purchased in the last three years.
Among respondents, 84 per cent believe loan assessment, processing and approval departments within the lenders need to move faster in line with the property sales market. Three-quarters (76 per cent) think lenders are old-fashioned in their services and offerings, and need to innovate.
When taking out a mortgage, more than a third (37 per cent) of respondents have experienced delays on the part of the lender – either in loan preparation, meeting the settlement date, or receiving loan documents without mistakes, which delayed the approval process and forced buyers to extend the settlement period in some cases.
It also found that 31 per cent of respondents have experienced anxiety during the loan approval period.
The survey revealed that Gen X are almost twice as likely as Baby Boomers to be faced with delays on the part of the lender (48 per cent of Gen X respondents compared with 26 per cent of Baby Boomers).
Tic:Toc founder and CEO Anthony Baum said buyers are under immense stress.
“Dwelling prices are 9.1 times the household income in Sydney, 7.5 times the household income in Melbourne, and 5.9 times in household income in Brisbane,” he said.
“While anxiety is now an expected part of the home buying process, lenders can be doing more to improve the home loan experience. This includes digital property valuations, online identification and credit checks, and alternatives to submitting payslips and bank statements.”
More from this writer:
-
The top 6 winter risks investors face, and how to navigate them
-
Investors record mortgage wins, non-major lenders surge in popularity
-
Gearing change may create investing ‘reversal’
-
Mix of ups and downs in property market last week
-
House prices more attainable across most capital cities over 2018’s final quarter
-
Unpopular capital city set for strong 2019
-
Investor appetite for borrowing slows, new data shows