FHBs ‘shunning’ loan technology

The respondents indicated online written applications as their second most preferred option (16 per cent), followed by telephone (6 per cent) and then hard copy written applications and online applications via Skype (both 2 per cent).

HomeStart Finance CEO John Oliver said the results show that even for current first home buyers who use technology across many facets of their lives, talking to an expert face-to-face outweighed the convenience of online services when it comes to such a major financial commitment.

“Applying for a home loan can be a daunting and overwhelming experience for a first time buyer,” Mr Oliver emphasised.

“The opportunity to meet face-to-face with the lender makes the home buyer feel more comfortable, rather than emailing, phoning or filling in the blanks on a website, where they have no idea who is on the other side receiving their information.”

Mr Oliver highlighted that with online applications, many first home buyers don’t feel that they can obtain the same level of support as they can in-person with an expert, particularly in relation to answering some of their questions.

“Even though meeting the mortgage broker or bank lender may take a few hours, first time buyers clearly value the face-to-face meeting over convenience when applying for a loan online,” he said.

He noted, however, that technology has been beneficial in creating new ways of applying for a mortgage, and allowing first home buyers to choose the option they are most comfortable with.

“It really comes down to personal choice,” he said. “Buying a home is the largest financial decision many people will make so there is comfort in having a personal relationship with someone, rather than plugging numbers into a machine.”

[Related: Mortgage professional creates strategy to help FHBs into market]