Mortgage rejection the top fear of home-obsessed Aussies
A new survey has found that rejection is the biggest fear of Aussie first home buyers – mortgage rejection, that is – except in Queensland where it’s something much more ‘in-your-face’.
The Finder First Home Buyers Report 2021 found mortgage rejection was the overriding fear of those buying a home for the first time in Victoria (39 per cent) and New South Wales (34 per cent), but, for Queenslanders, that issue was relegated to second place (38 per cent).
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Instead the survey found that Queenslanders’ number one fear was having bad neighbours … yes, you read that right … with 41 per cent listing that as their main concern when buying a property compared to 32 per cent in both New South Wales and Victoria.
Finder home loans expert Richard Whitten had zero tips to help with the neighbour issue, but he said there were steps that could be taken to tackle mortgage rejection.
“Having a poor credit score, a record of irresponsible spending, or a high ratio of debt to income could lead you to be seen as a risky borrower in the eyes of a lender,” he said.
“To improve your chances of approval, save up a larger deposit, ideally at least 20 per cent, and understand how much you can afford to borrow.”
“Take the time to pay off or consolidate any outstanding debts if you can, and build up a solid record of savings. Proving you are financially stable and responsible with your money is crucial to lenders.”
The survey of 1,028 first home buyers questioned them over their top non-financial fears when it came to buying their property.
Surprisingly Queenslanders were also much more laid back than their southern cousins over the personal sacrifices they’d have to make to buy a home (28 per cent) – which could stem from property prices in the Sunshine State being a lot more affordable than that of southern capitals.
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Having to make personal sacrifices was an issue for a third of all Aussies surveyed (33 per cent), as well as 38 per cent of Victorians and 31 per cent of those from NSW.
Queenslanders were also less concerned about having to bid at auction (11 per cent) – most likely because private treaty sales are still more common across the state. Auctions were an issue for one in five Victorians (20 per cent) and close to that in New South Wales (17 per cent).
AUSTRALIA
What are/were your top non-financial fears?
Qualifying for a home loan 38%
Having bad neighbours 35%
Personal sacrifices from buying a home 33%
Buying in the wrong location 33%
Committing to staying in the same property/ area 28%
Buying the wrong property type 26%
Having to bid at auction 16%
Not being able to find a tenant 11%
Winning at auction but then being told it wasn’t enough or being outbid after the fact 7%
Other <1%
None of the above 5%
More from news
QUEENSLAND
What are/were your top non-financial fears?
Having bad neighbours 41%
Qualifying for a home loan 38%
Buying in the wrong location 30%
Committing to staying in the same property/area 30%
Personal sacrifices from buying a home 28%
Buying the wrong property type 26%
Having to bid at auction 11%
Not being able to find a tenant 6%
Winning at auction but then being told it wasn’t enough or being outbid after the fact 5%
Other <1%
None of the above 8%
(Source: Finder’s First Home Buyer survey of 1,028 Australians in March 2021)
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