From Florida Realtors
TD Bank’s Mortgage Service Index survey revealed that 68 percent of Hispanics this year, compared with 62 percent last year, found their most recent home-buying experience to be “excellent” or “very good,” compared with 62 percent of the general market.
The TD Bank Mortgage Service Index, which was generated from a recent survey of nearly 1,500 consumers who purchased homes within the last 10 years, was designed to assess opportunities and challenges during the home-buying process, with a specific emphasis on home financing. Index results showed the number of Hispanic first-time home buyers increased by 10 percent since 2013.
“The Hispanic population continues to grow in the United States and lenders will need to make sure that they have the products and people in place who can create a legendary experience for this important segment of the home buying population,” said Michael Copley, executive vice president, retail lending, TD Bank. “Results from TD Bank’s Mortgage Service Index demonstrate that honesty and accessibility will be paramount to meeting and exceeding the home financing expectations of Hispanic buyers.”
Hispanic home buyers in 2014 reported an 8 percent decrease in their home buying stress, with 34 percent of respondents reporting the experience to be “extremely” or “very stressful” compared to 42 percent in 2013.
The survey also revealed Hispanics are as likely to obtain their most recent mortgage through their primary bank as they are with a new bank or institution.
In-person experience continues to be the preferred way for Hispanics to interact with lenders during the mortgage process. According to the TD Index, about 75 percent of Hispanics met with a lender in person compared with the general market, where 65 percent applied in person.
While more Hispanics met with their lender in person, it is also evident that they are using online sources to do mortgage research, referring to bank/lender websites (38 percent) as a source of information more than the general population (28 percent).
“Through the Mortgage Service Index, we’ve found that regular, open communication with a trusted lender leads to a more positive experience for buyers,” said Copley. “And even though our research has shown that Hispanics are leading the way with banking technology, it also is clear that online resources have not replaced the value that’s provided from an in-person meeting with a lender.”
The study was conducted among a nationally representative group of consumers from Jan. 13-17. The sample size of 505 has a margin of error of +/- 4.4 percentage points. The survey was hosted by global research company Angus Reid Public Opinion.
• Hispanic home buyers in New York City are more likely to have purchased a home in the past two years than their Floridian counterparts (43 percent vs. 34 percent), and are 12 percent more likely to be first-time buyers.
• Nearly half of those in New York City obtained their mortgage from their primary bank as opposed to only 40 percent in Florida.
• More Hispanic home buyers in New York City rated theirs as “very good” or “excellent” with respect to honesty (64 percent compared to 52 percent in Florida) and simplicity (58 percent vs. 45 percent).
• New Yorkers are more likely to feel stressed about their recent home-buying experience with 48 percent of respondents reporting higher levels of stress compared to 34 percent of Floridians.