Bankers beware. Customers are no longer showing loyalty to their lenders as they strive to get the best deal for their home loan, a mortgage broker says.
First-time homebuyers had virtually no loyalty towards lenders, especially the major banks, independent research conducted on behalf of broker Loan Market Group found.
"They are looking for the best deal they can get," the group's chief operating officer Dean Rushton said releasing the findings on Wednesday.
"So it doesn't matter to them whether they have had a long-standing relationship with a particular bank or any any lending institution through a savings account or other dealings."
Even when they secured a loan with a certain lender, they could see themselves refinancing several times during the life of the loan if they believed they could get a better deal.
The research found first homebuyers, faced with a tougher lending criteria, were doing their homework.
"The lending landscape provides them with a lot of options and they want to make sure they are in control and are not being talked down to," Mr Rushton said.
People upgrading their properties and investors show more loyalty to lenders than first homebuyers, but were still prepared to jump ship if necessary.
"The lending market is more sophisticated and access to the internet has enabled buyers to be better informed about the different products and services available," Mr Rushton said.
AAP