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Eight in 10 next home buyers are actively taking steps to better educate themselves on home financing, but almost half do not properly understand some key concepts and more than half are too scared to purchase at auction, according to the latest Westpac report.
New findings from the latest Westpac Home Ownership Report revealed that 56 per cent of NHBs were too scared to purchase at an auction, and that 46 per cent were not confident they know what to do.
It also found that 49 per cent of NHBs did not know exactly what equity is, 48 per cent did not know exactly what an offset account is and 41 per cent did not know exactly what refinancing is.
But the report established that 84 per cent of NHBs are turning to professionals (73 per cent) and leveraging digital resources (40 per cent) to upskill themselves.
It also found that 43 per cent considered themselves financially confident.
Westpac’s general manager of home ownership, Will Ranken, said that auctions can be daunting.
“But by doing their homework and being well prepared, home buyers can feel confident to make the most of current opportunities,” he said.
“To ensure the best chance of success, home hunters should observe several auctions before they bid, thoroughly research the property they’re interested in and ask the selling agent for comparable sales.”
Mr Ranken said that it’s also important to understand other loan services available to prospective buyers.
“A portability loan can be a great time-saver, particularly when already dealing with the emotional stress that can come with moving home. A bridging loan could also be an option if they want to stay in their current property while they build a new home.”
He said that all buyers should stay informed.
“It’s encouraging to see the majority of home buyers are already making the most of available resources to get up to scratch on key home loan concepts. However, more can be done to ensure Australians are fully equipped to achieve their home ownership goals,” he said.
“With the right help and guidance, the process of buying a home can be incredibly rewarding.”
NHBs are defined as home owner-occupiers who are either considering, or prioritising, upsizing or downsizing.
The report surveyed over 1,000 Australian home owners.
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