Millions of Australian mortgage holders and potential buyers have sought out advice from Google while navigating the economic environment of 2022, new analysis by Great Southern Bank has revealed.
The analysis showed that searches relating to interest rate hikes skyrocketed by 750% in the past year – an unsurprising result given the OCR didn’t change at all last year.
Inquiries about the Reserve Bank of Australia and home loans also spiked, with “interest rate rise” (+750%) topping the list of search terms about homeownership, followed by “RBA cash rate” (+500%), “RBA interest rate” (+300%), “fixed rate home loans” (+150%), and “fixed interest rate home loan” +100%), The Property Tribune reported.
Surging to record levels of popularity this year in terms of refinancing were home loans, repayments, stamp duty, and interest rate calculators, with cost of living and interest rates rising throughout 2022.
Interest in Great Southern Bank’s own refinance calculator spiked 16% during the last quarter.
Topping the list of search terms about refinancing this year was “pay calculator” (+5,000%), followed by “borrowing capacity calculator” (more than +5000%), “fixed rate home loans” (+600% YoY), “borrowing power calculator (+190% YoY), and “LMI calculator” (+120% YoY).
“How much can I borrow mortgage?” was the most searched query about homeownership, followed by:
- “How much can I borrow home loan?”
- “How to calculate mortgage?”
- “What is a reverse mortgage?”
- “How much deposit do I need for a home loan?”
- “How much is lenders mortgage insurance?”
- “What is refinancing?”
- “How much is the first home buyers grant?”
Megan Keleher, Great Southern Bank chief customer officer, said 2022 had been a tough year for mortgage holders, both for those on a variable rate who faced their eighth consecutive interest rate hike and first-home buyers who may have a deposit but struggle to meet their repayments.
“Rising interest rates and the increased cost of living have been affecting household budgets and driven more customers to seek options to save on their home loans,” Keleher said. “They’re using the internet to find out how much they can borrow, how to refinance, and what support may be available for first-home buyers.”
She said tools such as a refinance calculator could really help would-be buyers.
“And our data shows that applicants who use a calculator when submitting their application are four times more likely to get their loan approved,” Keleher said.
She also noted, however, that as this was a complex area, DIY home loan research would only get people so far.
“We’d encourage borrowers – and particularly first-time buyers – to talk to a broker or bank home loan specialist,” Keleher said. “They can help look at affordability, budgeting, and help explain the government grants and refinancing offers that can cut years from a home loan.”
Keleher said the research reflects that there were still first-home buyers in the market “eager to achieve their homeownership goals,” as she noted that there was a strong demand for government schemes, including the new Regional First Home Buyer Guarantee,” The Property Tribune reported.
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