Powered by MOMENTUM MEDIA
subscribe to our newsletter

80% of buyers fed up with out-of-date mortgages

Australia’s recent property boom has set a precedent for home buyers to act with more immediacy, but 85 per cent of Aussies believe that the mortgage process is still too slow, according to a new survey.

Commissioned by lending platform Tic:Toc and conducted by data company Pureprofile, the survey covered a panel of 1,000 Australians who had purchased property in the last three years.

The research set out to understand the relationship between property and mortgage transactions, and asked respondents about their property purchase experiences or the experiences of their family, friends or relatives who had bought in the last three years.

Among respondents, 84 per cent said that they believed the loan assessment, processing and approval departments within lenders needed to move faster to be in line with the property sales market. Three-quarters (76 per cent) believed that lenders were old-fashioned in their services and offerings and needed to innovate.

When taking out a mortgage, more than a third (37 per cent) of respondents said that they had 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.

Advertisement
Advertisement

It also found that 31 per cent of respondents had experienced anxiety during the loan approval period.

Looking at generational differences, the survey revealed that Gen X were 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 that 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,” Mr Baum 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.”

PROMOTED CONTENT


[Related: Commercial loans become digitised]

80% of buyers fed up with out-of-date mortgages
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Latest News

The digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.