Home loan deals lag phone deals for consumer research

Consumers are more likely to shop around for the best phone deal than spend time on getting a cheaper mortgage

Home loan deals lag phone deals for consumer research
The latest Savvy Savers Survey from Australian mortgage lender ME reveals that 84% of consumers search out the best deals on electronics and 81% do so for flights and hotels but just 62% are comparing home loans.

“Aussies are willing and able to bargain hunt for smaller items, but not the biggest purchase they’ll ever make – their home loan – and it’s costing them thousands,” said ME head of home loans Patrick Nolan.

The survey found that only 44% of respondents regularly review their mortgage compared to 68% who periodically check their phone contracts and 64% who review their insurance policies.

With the potential to save hundreds of dollars on a better mortgage deal should make shopping around a no-brainer for homeowners, it seems that there is an assumption that they already have the best deal.

The ME figures show that 74% believe they are on a good rate 41%, think they have no power to negotiate, and 35% think switching mortgage is “too much effort”.

In a clear indication that using a financial adviser can be invaluable for those looking to refinance their home loan, there is another issue that puts off consumers from comparing mortgages.

“Many borrowers find it difficult to compare because they’re confused about product names, features, and who and what information to believe,” Nolan said.