Sizing up the specialist market

Key findings:
• Six out of 10 potential non-conforming customers did not end up getting a home loan.
• Of the six in 10 non-conforming enquirers who did not end up getting a loan, 62 per cent did apply for a prime or non-prime loan but were not approved, and 38 per cent never submitted an application
• Interestingly, those who apply through a broker have a better chance – 43 per cent complete their home loan application, compared with 26 per cent who apply directly.
• Non-conforming borrowers tend to be younger, with 14 per cent between 18 and 24 years, 33 per cent between 25 and 34 years, 21 per cent between 35 and 44 years, 19 per cent between 45 and 54 years, 8 per cent between 55 and 64 years, and 5 per cent that are 65 years and over.
• The prognosis for those customers who do not get a home loan: 38 per cent delay their application until their financial or employment circumstances change; 29 per cent understand they will have to apply to a lender that is not one of the big four; 25 per cent understand they will need to pay a higher interest rate; 22 per cent admit they may require broker assistance; and 16 per cent were told not to bother applying by their financial institutions.

Written by Reporter

Last Updated: 11 March 2022

Published: 22 February 2016