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ISCOVER
Staff Reporter
Competition between Australia's lenders looks set to improve over 2012, with 65 per cent of borrowers saying they would look outside the majors for their home loan.
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In addition, the annual Citi-Fin Q survey found Australian consumers are pessimistic about the current state of the mortgage market, with 70 per cent of saying the government needs to do more to help first time buyers and 63 per cent saying they don't believe home ownership will be an option for the next generation of Australians.
Vibha Coburn, director of Citibank Mortgages said the findings point to a trend of Australians looking at all their options when choosing a home loan.
"Despite the doom and gloom from our survey respondents, I believe the fact that Australians will look at mortgage providers outside the big four when choosing their home loan is a positive sign," Ms Coburn said.
"Regardless of which home loan you choose, the best thing you can do is to conduct your own research and compare a range of products and lenders to find the most suitable solution for your needs."
The Citi Fin-Q survey also found that Australian's views on home ownership are evolving with 11 per cent indicating they have moved or down-sized in the last 12 months to lower their costs; and 62 per cent have indicated that home ownership is so expensive, they've adjusted their expectations about what their dream home might look like.
"At Citibank, we're seeing a trend where customers might sacrifice the size of a property to live in a particular location or vice versa. This could mark a return to eras gone-by when first home-buyers bought an entry-level property with the aim of upgrading to another larger property, or a property in another area," Ms Coburn said.
"The last three to four years have changed the way Australians think and behave about their finances and this isn't necessarily bad. Australians are saving more than ever so are building larger deposits, and thinking carefully about building their financial future."
