A survey of 1,000 Australian home hunters done by the Commonwealth Banks shows that Perth homebuyers are lagging behind when it comes to simple real estate knowledge. According to this new research, only 18 per cent of Perth respondents is aware that the official cash rate has changed since last year, despite the fact that 70 per cent of them said that they are confident of their property market knowledge.

Only 28 per cent of them also answered correctly when asked about the median dwelling price of their city. Similarly, 45 per cent answered incorrectly when asked to compute the average monthly repayment on a $500,000 mortgage.

According to Realmark agent Lachlan Sinclair, the results were surprising, although he admitted that many WA buyers’ home purchasing sentiments are driven by emotion.

“While there are buyers who are very sophisticated, when people are buying their own homes, often there’s that emotional attachment driving them,” he said. “In the current market, with homes taking longer to sell, more agents area having in-house financial services to provide buyers with information.”

Mark Hay realty director Mark Hay also stressed the importance of researching the property market before entering it. He said that the finest financial details could go over their heads, hence the importance of seeking professional advice.

“One thing we often see is confusion about lenders’ mortgage insurance,” Hay said. “Buyers will think it is insurance to protect them when in fact it is to protect the lender.”