Gen Y focused on interest rates
In a recent survey, 65 per cent of Gen Y respondents noted that the interest rate matters most to them, while 59 per cent of all respondents answered the same.
A survey by mortgage broker Loan Market, which asked ‘What is the most important factor for you when choosing a lender?' found that 20 per cent cited ‘loan features’ as the most crucial factor, while 13 per cent looked for customer service.
Just eight per cent cited the lender’s ‘brand’ as an important factor, and Gen Y’s were even less concerned with this factor, with five per cent answering in this category.
Loan Market corporate spokesman, Paul Smith, said this sentiment was a surprising result.
"These survey results are quite surprising given that the big four banks continue to dominate new home loan lending in Australia," Mr Smith said.
"But some smaller lenders have niche products that are designed to help certain groups struggling to get finance from another institution, such as self-employed borrowers or property investors. They could be gaining more consumer support.
"The laws making it easier for people to switch lenders may have also had an impact on customer loyalty,” he said.
The online poll surveyed 643 respondents.