Whilst a large majority of Australian home owners still have their mortgage loans through one of the ‘big four banks’, it was interesting to see that a recent study found that most of us would not rely on one of the major lenders if we ran into financial issues.
Galaxy Research conducted a national survey of over 1,000 Australians to find out who they would prefer to turn to for financial services if they were facing a serious financial situation such as losing their job, a business failure, marriage break-up, serious illness or a death in the family. Despite around 80% of us having a home loan with one of the major banks, a total of 72% of the survey respondents said that one of the big banks would not be their preferred option.
The survey found that for financial assistance in tough times:
- 37% would choose a credit union or building society;
- 28% one of the big four banks;
- 25% would try a mortgage broker;
- 22% an accountant; and
- 10% a non-bank lender.
Obviously, if you do the numbers you will find that more than 20% selected more than one option. However, what does seem very clear is that whilst most home owners adopt a ‘bigger is better’ approach to sourcing their home loan, they prefer a more personal approach from a smaller organisation if difficulties arise.
The team at Vendor Advocacy Australia are not financial advisors, but our advice for anyone who may be facing difficult financial circumstances is firstly to make sure you fully understand exactly what your financial situation is, and where the pressure is coming from.
Once you have established that, the second step is to seek out experienced professional advice, and from more than one source. We often find that when it comes to financial matters, the more objective sources of information you can find, the clearer your decisions will become.
Don’t forget that if your information-gathering extends to weighing up your options on the property front, you can always give the team at Vendor Advocacy Australia a call on 9430 0000 for experienced, objective advice.
For more general advice on how to avoid costly mistakes when you sell, our free booklet, “Fatal Real Estate Traps Exposed”, is a great place to start.