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ISCOVER
Staff Reporter
While first home buyers are no doubt conducting some preliminary research before jumping into the property market, a majority of brokers believe the preparation done by these buyers is “minimal”.
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According to a new poll by Loan Market Group, 55 per cent of the 218 brokers surveyed thought first time buyers had a minimal amount of preparation under their belts, while 43 per cent said they had a basic understanding of the key requirements to obtaining a home loan.
Just 2 per cent of brokers thought first home buyers “know everything they need to know”.
“Purchasing a property is the biggest financial decision most people will make during their lives so it is reassuring to see most first time buyers are taking the time to educate themselves on the steps involved in obtaining finance,” Loan Market Group spokesperson Paul Smith said.
According to Mr Smith, the more educated and aware a buyer is of features such as their LVR or their borrowing capacity, the better prepared they’ll be to consider additional charges such as LMI or understanding their repayments.
“Securing finance for your property is a process that involves many steps and several considerations such as the government concessions available and the different criteria lenders apply on an applicant’s income and loan size need to be considered.”
