Despite 80 per cent of Australian mortgage holders have their home loan with one of the so-called 'big four', almost three-quarters believe a major bank would not be the best option if they faced a personal crisis.
Although 80 per cent of Australian mortgage holders have their home loan with a major bank, almost three in four believe one of the 'big four' would not provide them with the best service if they faced a personal crisis.
The nation-wide survey, conducted by Galaxy Research for non-bank online lender State Custodians Home Loans, asked 1,005 respondents who they thought would provide the best service when seeking or re-negotiating a mortgage or investment loan if they were facing an event such as unemployment, a business failure, divorce, serious illness, or a death in the family, which could affect their financial circumstances.
The majority of Australians - 72 per cent - said a big bank would not be the best option if faced with these circumstances.
Over one third of people (37 per cent) said they would receive the best service from a smaller lender such as a credit union or building society.
Another 28 per cent said a big bank, 25 per cent say a mortgage broker, 22 per cent said an accountant, lawyer or financial planner, and 10 per cent said a non-bank lender.
“When you’re in crisis mode it can be very stressful and confusing trying to make any major decision," said State Custodians general manager Joanna Pretty.
The big banks can make people feel like "just a number", she said.
Pretty advised anyone unlucky enough to find themselves in such circumstances to, firstly, "understand your financial situation is key. You need to totally be across all your essential and non-essential expenses.
"Secondly, don’t rely solely on well-meaning family or friends to advise you as they’ll always colour their advice with their own personal experiences.
"Finally, contact various experts – not just one – and explain your situation. The more you talk to people, the more likely it will become clear as to who is most able to assist you,” she advised.
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