The expertise of the key broker to obtain the right loan: Mortgage Choice

The vast majority of Australians consider the expertise of brokers to be necessary to get the right loan, according to new figures released by Mortgage Choice.

The data, which is derived from a June survey of 1,002 brokerage clients and conducted by Honeycomb Strategy, concluded that getting the right loan was the main draw for the third-party channel.

According to results from Mortgage Choice, 83% of respondents said they were motivated to use brokers because “they have the expertise to find the right mortgage.”

More than half (55%) of these same respondents indicated that a broker’s ability to obtain a loan was a determining factor in using the space.

Additionally, 44 percent and 42 percent of respondents respectively said they were attracted to brokers because of their “deep industry knowledge” and how brokers “can do most of the work.”

However, brokers have also been singled out as key to securing the most value for borrowers. According to this latest Mortgage Choice survey, 71% of borrowers said they were motivated to use mortgages because the channel ultimately generated value.

Additionally, 53% said they would use a broker to guarantee the best rate, while 52% said brokers would give them access to the best deals.

Mortgage Choice Managing Director Anthony Waldron commented: “As people progress through the home buying journey there is a clear need to speak to someone knowledgeable about their options. of financing.

“Clients can be confident that a broker’s knowledge and we will find the right loan, while making the loan application a smooth and less stressful experience.”

However, the same figures also suggest that brokers were essential for borrowers to refinance their homes. Of the 651 respondents who had ever used a broker for refinancing, 71% said they had always relied on the third-party channel.

A separate survey commissioned earlier this year by Mortgage Choice found that less than one in four borrowers felt confident navigating a home loan refinance.

“It highlights the sticky nature of the broker-client relationship, and why being able to meet client needs at every stage will go a long way to building long-term client loyalty,” Waldron said of this latest refinance data. .

“It is crucial that aggregators provide ongoing support and training to build the capacity of their brokers so they can continue to meet borrower expectations.”

[Related: Borrower hesitance to refinance presents opportunity for brokers]

The expertise of the key broker to obtain the right loan: Mortgage Choice

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Last update: August 17, 2022

Posted: August 18, 2022

Sam Nichols


Sam Nichols is a journalist at The Adviser and Mortgage Business.

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