Home loan

What Australian homeowners really want from a home loan


Looking more closely at Australian home loan priorities, there were subtle differences between what different generations wanted from their next mortgage.

Boomers cited an array of different flexible features as their top priority, with one in two saying a redraw feature was essential, while a quarter called multiple clearing accounts a must-have. Additionally, 41% said the general flexibility of home loans – including the ability to change their repayments or loan type quickly and easily – would be an important feature when looking for a new home loan.

Across generations, the data revealed that Gen X was most similar to baby boomers, with this generation rating home loan flexibility as a top priority for their next home loan. Along with the flexibility of home loans, this generation of Aussies also said repayment offers were an important consideration, with 2 in 5 listing it as a priority.

While flexibility was always a top consideration for young Australians, so were digital tools and the ability to easily access mortgage specialists.

“Often dubbed ‘digital natives,’ it’s no surprise to learn that 32% of Gen Z homeowners rated an app to manage your loan in one place as a key feature for their next home loan,” said the executive managing director of Commonwealth Bank Home Buying. , Dr Michel Baumann.

“Interestingly, despite their desire for digital tools and features, this cohort also said that the support of their loan specialist was one of the factors considered when choosing a future home loan. This shows the continued demand for a blended experience of digital self-service and expert support and assistance.”

For millennial homeowners, the ability to have flexible features, multiple clearing accounts and withdrawal facilities were listed as top priorities, with two in five citing them as an important consideration for their next loan. Not too different from their digitally-focused Gen Z counterparts, 25% of millennial homeowners also said having an app to manage their home loan in one place was an important feature.

“A home loan is a long-term commitment and it’s clear from the research that homeowners are looking for a mortgage and lender that can grow with them throughout their lifetime – a flexible home loan and lender that offers customers the ability to make changes to meet their ever-changing needs,” added Dr. Baumann.

“In fact, when homeowners were asked what their biggest concern was when it came to taking out a home loan, over 50% said they would be concerned if their loan was not flexible and ‘they couldn’t make changes to it because it was necessary. This included worries about not being able to make changes to their loan if their circumstances changed or that they would not be covered if something happened to their family and they could not make their repayments.

When it comes to what Australian homeowners think making their home loan more manageable, almost 60% said the ability to instantly change their repayment amount in their banking app would make a difference, while 61% said they had the possibility of modifying their type of loan. would make it easier to manage their mortgage.

“At CommBank, we help more Australians buy homes than any other lender and are proud to be able to offer what we consider Australia’s most flexible home loan. Part of this flexibility is offering our clients the ability to match their home loan repayments with their salary payments, as well as providing clients who qualify for owner-occupied home loans with access to compassionate care. – who can provide support for home loan repayments for approximately 12 months. if an eligible borrower, spouse or dependent dies or is medically certified with a terminal illness. We know that life is not always easy and we want to be able to support our clients at every stage of their life,” said Dr. Baumann.

About Research

The survey was conducted by the House of Brand group, with fieldwork conducted between 08/29/2022 and 08/30/2022, with a sample of n=1,012 nationally representative respondents, of which n=599 owners, with quotas set on age, gender and location.

What you need to know

Press releases are prepared without regard to the objectives, financial situation or needs of an individual reader. Readers should consider the relevance of their situation. Visit Important Information to access the Product Disclosure Statements or Terms and Conditions currently available electronically for Commonwealth Bank Group products, as well as the relevant Financial Services Guide. Target market determinations are available here. Loan applications are subject to credit approval. Interest rates are correct at the time of publication and are subject to change. Fees and charges may apply

Australia’s most flexible home loan based on comparing product features with ABC’s competitors and the ability to self-service home loan modifications.

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