St. George Bank: Aussies compare home loan approval to winning the meat tray raffle
New St. George Bank Home Buying Survey has revealed that 1.1 million Aussies compare the excitement of being approved for a home loan to winning the local meat tray raffle. The application process for first home buyer’s, on the other hand, is stressful (51%) and overwhelming (42%).
The study also found that Aussies who waited less than a week for approval felt anxious (58%), stressed (55%) and impatient (61%), with each of these percentages increasing to nearly 100% for those who waited for at least 7 weeks.
St. George has taken all this onboard, launching a new online home loan application platform, aimed at taking the heat off of first home buyers.
“To help give customers confidence in their application, we developed a new online home loan application platform that provides a friendlier application experience for buyers by addressing some of the common challenges that come with a home loan application,” said St. George’s General Manager, Ross Miller.
This new user-friendly online home loan application platform gives borrowers a personalised snapshot with information on how much they can borrow, any upfront costs, the most they could afford on a property and estimated monthly repayments.
“Digitising the experience means borrowers can now complete their St. George home loan application online and at a time that suits them and could even receive an indicative response in as little as 15 minutes – that’s got to feel better than winning the meat tray raffle!” said Ross.
Home loan application hacks:
1. Before you apply, make sure to review your finances & clear any lingering debt: Lenders will be more likely to lend money if you’re debt-free. Ross Miller said to, “look at any existing debt you might have, like a personal loan or credit card, and also have a good understanding of your borrowing power (that’s how much you could borrow!)”
2. Remember to budget for any additional fees or expenses: It’s important to determine whether there are any other additional fees or loan costs on top of the headline rate as this might impact your decision on which loan to go with. Ross recommends to “consider the additional costs associated with buying a property and make sure you’ve budgeted for these extra costs. These could include moving costs, cleaning fees, Stamp duty and Legal fees – just to name a few!”
3. As the saying goes, ‘measure once, cut twice!’: As you can probably imagine by now, applying for a home loan is no walk in the park. There’s a tonne of information and documentation that you’ll need to provide the lender when submitting your application, and forgetting to include just one thing could delay the whole process. “If you’ve got stars in your eyes about a particular property you’ve found, be at the ready! Documentation often holds up the application process, so make sure you provide all relevant paperwork upfront – including payslips, bank statements and any other financial statements of debts you might have,” said Ross.
4. Do your homework: Educate yourself about home loans to get a better understanding of important elements like rates, fees and features. That way, you’re able to make a more informed decision when choosing a home loan. As Ross put it, “everyone has different needs and goals, so it’s important you choose a loan that’s right for you based on your financial situation. I’d, therefore, encourage prospective buyers to get educated; the more you know about what’s involved with buying a property, the better you’ll be able to make informed decisions to help achieve your goals!”
5. Run a home loan comparison: Don’t just go out and apply for the first home loan you see. Once you know your price range, preferred loan type and the features you want, have a look to see what’s in the market. Make use of Mozo's home loan comparison tool to get a side by side comparison of what’s on offer, so you can find the best home loan option for you.