Growing numbers shop for home loans

There is some good news and warnings for banks in a recent survey of people with home loans.

Monday, July 16th 2012, 8:58AM

A new Horizon Research survey shows 13% of home owners with mortgages are shopping for better deals right now.

The survey reveals the huge pressure being placed on mortgage providers to compete.

It also indicates worsening household finances might be one of the factors driving the search for better deals.

The survey of 1165 residential home owners with mortgages shows 43.5% will go shopping for better mortgage rate or loan conditions within the next 12 months.

Taken in the past week, the nationwide survey of adult New Zealanders’ shows

13% are looking right now for better interest or loan conditions  
4.5% will look in the next three months
6.2% in the next 6 months and
 8% in 12 months or more from now.
Another 11.9% will shop around immediately if their current floating mortgage interest rate should rise.

The results are similar when rental property owners with mortgages are included.

Horizon Research says the major drive to find better mortgage deals also looks to be driven by large numbers who say their household’s financial position is worse than a year ago:

44.1% or home owners with mortgages say their financial position is worse than a year ago  
37.9% say it’s about the same while  
11.3% say they’re better off and  
2.7% would rather not say.

Horizon says detailed analysis of the survey shows significant opportunities for some of the main banks to target others’ customers.

It also shows, over the next few months, which banks are most at risk from customers’ shopping elsewhere. Many say they will not go to their current mortgage provider first when they start shopping for better deals.

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