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ISCOVER
Staff Reporter
Interest rates are more important to borrowers than branding, new research has revealed.
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According to a new survey by Loan Market Group, just eight per cent of borrowers believe brand is a major consideration for them in their home loan decisions.
Meanwhile, 59 per cent of borrowers said the interest rate was most crucial to them when they were deciding which lender to take out a home loan with.
Loan Market corporate spokesman Paul Smith said the survey results were quite surprising, given that the big four banks continue to dominate new home loan lending in Australia.
“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,” he said.
“The laws making it easier for people to switch lenders may have also had an impact on customer loyalty.”
The online poll of 643 respondents found 20 per cent cited loan features as most crucial, while 13 per cent of those surveyed said customer service was their priority.
These results suggest borrowers are no longer flocking to the 'perceived safety' of the majors, something that happened in the wake of the global financial crisis.
