ISCOVER
Almost two-thirds of mortgagors believe they may have missed out on a better home loan deal, new Mortgage Choice data has revealed.
Almost two-thirds (62 per cent) of mortgage applicants feel that there might have been a better home loan option for them compared to the one they chose, according to brokerage Mortgage Choice.
Research in the Mortgage Choice Home Loan Report also found that more than half of borrowers (57 per cent) wished they had done more research when choosing their first loan, with 10 per cent regretting not seeking expert advice.
A July 2025 survey of 1,000 Australians also revealed that 65 per cent of borrowers were unclear about at least one aspect of the home loan process, indicating a possible undersupply of professional mortgage advice.
The quarterly report analysed Mortgage Choice submission data, which represented all home loan applications submitted by the company’s franchise broker network, and found that a further 14 per cent of borrowers felt they made the wrong loan choice when buying their first property.
Among the most common mistakes flagged by borrowers were the assumption that all home loans were the same (18 per cent), too great a focus on rate (18 per cent), and a failure to consider how their needs might change in the future (18 per cent).
Another 16 per cent said they regretted opting for major lenders without considering other options, while 13 per cent said they made the mistake of assuming home loan pre-approval guaranteed final approval.
Commenting on the trends, Mortgage Choice CEO Anthony Waldron said: “The decision to buy property is one of the biggest financial commitments most Australians make. This new data highlights how important it is that buyers are supported with expert advice around planning and budgeting.
“Our survey also highlights that when it comes to choosing the right property and home loan, research and preparation make all the difference. Survey respondents who suffer from buyer’s remorse told us they failed to adequately plan and research before purchasing their first property.”
Waldron continued: “Mortgage brokers can help first-time buyers compare their home loan options, including rates, features and structures, from a range of lenders so they can feel confident that they’re making the right choice.”
The survey also asked respondents with a home loan about the motivation behind their most recent review.
It found that 72 per cent of homeowners review their home loan at least once a year, up from 59 per cent a year ago.
Nearly half of respondents (49 per cent) said securing a lower rate was the leading reason for the loan review.
Other options included consolidating debt (11 per cent), while one in 10 reviewed their loan to change loan term (10 per cent), change rate type (from fixed to variable or vice versa) or access home loan features like an offset account or redraw facility.
Waldron commented: “The Reserve Bank delivered its second cut to the cash rate this year over the June quarter. This has spurred borrowers to meet with their mortgage broker to review their home loans, driving up the value of loans for refinance by more than 22 per cent year-on-year.
“The Reserve Bank is expected to deliver another cut to the cash rate at its August meeting, which should encourage more borrowers to see if they can access a better rate on their home loan.”
The latest research from Mortgage Choice follows separate data from Great Southern Bank that found a misconception existed for borrowers in believing they needed a certain amount saved before seeking advice, describing the view as a ‘major blind spot for Australians’.
The problem was particularly pronounced with Gen X and Baby Boomers.
[Related: Borrowers could seek advice from brokers sooner, research shows]
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