The biggest questions on the minds of Australian borrowers revealed.
By understanding what’s on the minds of Australian borrowers, you can pre-empt your clients’ questions and hone your value proposition. Recent research has revealed the finance questions that keep Australians up at night.
Out of more than 7,000 questions submitted by Australian borrowers, the most common fears around home loans were fees associated with exiting a home loan, including break costs and discharge fees as well as set up costs for a new loan.
The second biggest concern by borrowers was regarding taxes such as stamp duty and capital gains tax (CGT), with almost one question every day posted about CGT for the past few months alone.
Michelle Hutchison, spokesperson for the comparison website finder.com.au, which compiled the research, said borrowers expect to be stung by hidden fees and taxes, which discourages them from switching home loans.
“Many borrowers are probably too frightened about being stung by fees and taxes to consider switching their home loan. This is despite the fact that it’s relatively cheaper to switch home loans for most borrowers compared to two years ago.
"And even though taxes are one of life's certainties, it's still one of the most confusing topics for many borrowers. For instance, many borrowers don't know how to calculate stamp duty costs for a new mortgage, which can easily be found using an online calculator. Another surprising concern was the vast number of enquiries about capital gains tax for owner-occupied mortgages - this only applies to investment properties."
The third most common concern for borrowers was about refinancing. Borrowers asked about how to refinance and if it's worth the cost of switching.
What do you think are the key concerns for Australian borrowers? Share your thoughts below.
