A new report suggests that First home buyers only choose to stay in their home loans around 2 years before looking around for a better home loan deal.
Research by LJ Hooker Finance has found that almost half of all first-home owners are looking for better deals despite only a short period of property ownership.
LJ Hooker head of finance Peter Bromley says the survey of more than 1000 people found property market beginners do not necessarily put in a lot of time into selecting their first home loans. However a short time after purchasing they start to look around for a better home loan.
Many first home buyer simply approach their parent’s home loan provider for a home loan in the first instance, without taking much time to compare home loans.
LJ Hooker found more than one in five people active in the market are looking to refinance their home in the near future.
Twenty per cent of people considering refinancing their home loans say interest rates are their main concern, while 17 per cent are refinancing for debt consolidation.
ING Direct’s director of products, John Arnott, says it is vital customers are comfortable with their home loans and they should do their home work before looking at refinance options.
Borrowers should consider the total picture instead of acting out of a short term gain.