19 March 2019, Sydney – Pepper Money has released new research1 revealing what borrowers are most worried about over the coming year.
RFi Group and Pepper Money surveyed 1,126 borrowers in January 2019, and while the greatest concern for consumers is getting the right home loan rate for their circumstances, other concerns expressed by borrowers relate more closely to recent developments in the market.
The current state of the Australian property market is weighing heavily on consumers’ minds - 40% of consumers cited receiving a low valuation for their property as a priority concern.
By contrast, many borrowers fretted that property prices could prevent them climbing the property ladder, with 37% of consumers ranking property prices and their ability to afford the type of property they want as a pressing concern.
Almost one in three borrowers were worried about being declined by their bank, reflecting the pressures of tightening lending criteria at the big banks.
Pepper Money is urging brokers to study closely the issues that are concerning prospective borrowers and develop solutions to them in advance, as brokers remain borrowers’ most widely-preferred channel for securing a mortgage.
“Brokers should be paying close attention to what borrowers are saying worries them, so they can help reassure them that alternatives are available to help them.” said Aaron Milburn, Pepper’s Director – Sales and Distribution.
“With a volatile property market and pullback from the big banks in certain parts of the lending market, consumers will be looking to trusted experts more than ever to help them determine the best solution for their individual situation,” Mr Milburn said.
“Consumers look to brokers and to lenders to help them navigate the complexities of the lending process. Their minds are on bigger issues, like how to get the best rate possible and whether their property will get a decent valuation.
“There’s a wide array of lending solutions available because of alternative, non-bank lenders like Pepper Money. Consumers need to know that there are quality alternatives beyond the big banks, who they may find are tightening their lending criteria,” he said.
Pepper Money offers brokers a range of tools to quickly help their customers identify the right loan for their situation, such as Pepper Product Selector, an online borrowing power calculator, and its one-application three-credit policy approach.
1. RFi Group Australian Mortgage Council