Borrow
The 3 basic milestones of a ‘complex’ home loan journey
Have you found the home loan process complex, multifaceted and nonlinear? You aren’t alone, with a new report considering the journey a complicated one for both first home buyers and seasoned investors alike.
The 3 basic milestones of a ‘complex’ home loan journey
Have you found the home loan process complex, multifaceted and nonlinear? You aren’t alone, with a new report considering the journey a complicated one for both first home buyers and seasoned investors alike.
In the recent ASIC report, Looking for a mortgage: Consumer experiences and expectations in getting a home loan, the commission laid out the steps taken in the home loan journey, while highlighting that “whether consumers are buying their first home or investing in residential property, the commitment to take out a home loan is one of the biggest financial decisions they will make”.
The snapshot of the home loan journey provided in the report showcased three milestones as generally evident across each consumer’s journey:
1. Choosing whether to take out a loan directly through a lender or by using a broker, which often involves initial research and “shopping around”.
2. Engaging with either the lender or broker.
3. Deciding on a loan, which encompasses pre-approval, approval and settlement.
According to ASIC, consumers usually follow multiple pathways through their journey.
“At each milestone, they may stop, regress or progress depending on their individual circumstances,” it reported.
The initial decision as to whether someone would take out a loan directly or go through a broker is often influenced by experience, the research found, with consumers considering what would be the “easier” option and who they thought would be able to deliver them the most suitable home loan as major deciding factors.
The recommendations and advice that is provided by family and friends also has a heavy influence on consumer decision-making, according to the report.
It flagged that consumers who already had a good idea about the home loan they were after and valued the convenience of staying with their existing lender tended to take out their loan direct with a lender, with these individuals generally making a loan decision after comparing only a few offers.
Consumers who were less sure about which home loan would be right for them, or who were keen to access a range of home loan options without having to do the “shopping around” themselves, were more likely to engage a broker, the report continued.
“How these consumers reached a decision on the loan they would take out varied and usually depended on the consumer’s own confidence and knowledge about home loans,” ASIC offered.
It went on to say that it was unsurprising that the first home buyer journey would be distinct from that of other borrowers with previous experience to call on.
RELATED ARTICLES
About the author
About the author
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
Loans
Debunking credit myths leads to big wins with transparent hardship design
New research from Arca’s CreditSmart initiative surfaces a stubborn problem: Australians under financial strain are avoiding hardship support because they fear lasting damage to their creditRead more
Loans
No-deposit home loans in Australia: The growth gambit that tests risk discipline
A new no-deposit mortgage has landed in Australia, promising to crack the hardest nut in housing—fronting a deposit—while raising old questions about risk and capital. For lenders, the product doubles ...Read more
Loans
Rate relief ignites a mortgage scramble — and a technology arms race
Australia’s rate easing has flipped mortgage demand from ‘defend and retain’ to ‘originate and grow’. Refinance waves and a rekindled purchase market are colliding with digitisation, broker dominance ...Read more
Loans
Trust is the moat: How brokers can win in an AI-accelerated, commoditised mortgage market
In an evolving mortgage landscape where algorithms are levelling the playing field, Australian mortgage brokers are finding that trust, rather than price or speed, is becoming their most valuable ...Read more
Loans
CreditSmart revolutionises hardship support and lenders risk missing out
Australians under cost‑of‑living pressure are sidestepping hardship help because they fear a permanent stain on their credit file. Arca’s CreditSmart initiative has thrust this misconception into the ...Read more
Loans
Australia’s 40‑year mortgage moment: affordability optics, lifetime cost, and the new risk calculus
Forty‑year home loans are shifting from niche to feature in Australia, led by challenger banks and mutuals courting first‑home buyers. The headline promise—lower monthly repayments—masks a material ...Read more
Loans
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
Loans
Debunking credit myths leads to big wins with transparent hardship design
New research from Arca’s CreditSmart initiative surfaces a stubborn problem: Australians under financial strain are avoiding hardship support because they fear lasting damage to their creditRead more
Loans
No-deposit home loans in Australia: The growth gambit that tests risk discipline
A new no-deposit mortgage has landed in Australia, promising to crack the hardest nut in housing—fronting a deposit—while raising old questions about risk and capital. For lenders, the product doubles ...Read more
Loans
Rate relief ignites a mortgage scramble — and a technology arms race
Australia’s rate easing has flipped mortgage demand from ‘defend and retain’ to ‘originate and grow’. Refinance waves and a rekindled purchase market are colliding with digitisation, broker dominance ...Read more
Loans
Trust is the moat: How brokers can win in an AI-accelerated, commoditised mortgage market
In an evolving mortgage landscape where algorithms are levelling the playing field, Australian mortgage brokers are finding that trust, rather than price or speed, is becoming their most valuable ...Read more
Loans
CreditSmart revolutionises hardship support and lenders risk missing out
Australians under cost‑of‑living pressure are sidestepping hardship help because they fear a permanent stain on their credit file. Arca’s CreditSmart initiative has thrust this misconception into the ...Read more
Loans
Australia’s 40‑year mortgage moment: affordability optics, lifetime cost, and the new risk calculus
Forty‑year home loans are shifting from niche to feature in Australia, led by challenger banks and mutuals courting first‑home buyers. The headline promise—lower monthly repayments—masks a material ...Read more
Loans
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
