Resolve Finance’s latest research has underscored young borrowers’ lack of confidence in navigating the mortgage market amid the current uncertain interest rate environment.
The research, which gauged confidence levels on a scale of one to five, with one being “not confident at all” and five indicating “extreme confidence,” revealed that only 44% of homeowners under the age of 35 were confident about navigating the mortgage market.
On the flip side, 68% of participants aged 55-64 and 76% over 65 expressed confidence in their mortgage decision-making skills.
Overall, 51% of homeowners, regardless of age, reported feeling very or extremely confident in making informed decisions about their mortgages.
The survey also unveiled a positive correlation between confidence levels and the utilisation of mortgage brokers. Approximately 70% of Australian borrowers enlisted the services of a broker for their home loans. Among those who engaged a broker, 17% expressed full confidence in navigating the mortgage market. In contrast, only 9% of DIY borrowers and 8% who stuck with their current lender without exploring other options shared the same level of confidence.
“The survey results underscore the challenges faced by younger homeowners in navigating the complex mortgage market, especially in times of uncertain rate movements,” said Don Crellin, managing director of Resolve Finance.
“It is heartening to see that those who engage the services of a mortgage broker exhibit higher levels of confidence in making informed decisions.”
Crellin also underscored the vital role of brokers in offering expert guidance and support.
“Mortgage brokers play a crucial role in helping clients navigate the intricacies of the mortgage market,” he said. “They provide personalised advice, access to a wide range of lenders, and a comprehensive understanding of the current market conditions.”
Findings also showed that 16% of all borrowers are opting to stay with their current lender amid the uncertain interest rate environment, indicating the need for increased awareness regarding the benefits of seeking assistance from a mortgage broker to negotiate with their current lender, should they opt for this financing option.
Resolve Finance is encouraging all homeowners, particularly the younger ones entering the property market, to explore mortgage broker services for improved confidence and decision-making.
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