Which home loan features are most important to homeowners?
New CommBank research that surveyed more than 1,000 people found almost 80% of homeowners said redraw and multiple offset accounts, together with flexible features like the ability to change repayments in an app or online, were critical to them and their needs.
The data shows there were subtle differences between what the different generations wanted from their next mortgage.
For Baby Boomers, one in two said a redraw facility was critical while 41% said the ability to change their repayments or loan type quickly and easily was important.
Gen X had very similar priorities to Baby Boomers along with the desire for cashback offers, with two in five listing this as a priority.
“Often dubbed as ‘digital natives’, it’s hardly surprising to learn 32% of Gen Z homeowners labelled an app for managing your loan in one place as a key feature for their next home loan,” said Dr Michael Baumann, Commonwealth Bank’s Executive General Manager Home Buying.
“Interestingly, despite their desire for digital tools and features, this cohort also said support from their lending specialist was one of the factors they considered when choosing a future home loan.”
While flexibility was still a top consideration amongst younger homeowners, so too were digital tools.
“A home loan is a long-term commitment and it is clear from the research that homeowners are looking for a mortgage and lender that can evolve with them throughout their life,” Mr Baumann said.
“They’re looking for a loan and home lender that is flexible and provides them with the ability to make changes to suit their ever changing needs.”
With $117 billion in CommBank fixed rate home loans set to expire in 2023, many homeowners may seek out alternative lenders that offer more flexible options.
Earlier this year, CommBank launched Unloan, a digital home loan product targeting refinancers by providing flexibility through fast approval times and loyalty discounts.
Unloan CEO Daniel Oertli told Savings.com.au most of the brand's applications can be approved in one to three days.
“Unloan has been specifically built not only to offer a great rate, and an increasing discount every year, but also a very fast and easy application process,” Mr Oertli said.
“For us, the application process is one of those lynchpins. We want to constantly work on making it faster and faster - it already can be completed in as little as 10 minutes."
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
