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Most dangerous words for brokers: I did not understand

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Australian Broker | 28 May 2012, 05:15 AM Agree 0
An industry analyst has revealed that borrowers are woefully ill-informed about mortgage products, a fact that could find brokers under fire
  • rob | 28 May 2012, 09:50 AM Agree 0
    I don't deny there are benefits to brokers and clients by taking an educational approach to mortgage broking. However on the first point of the article regarding the survey results I suggest that to publish the results without also publishing the wording of the questions is pointless and potentially misleading. For example a client does not need to know the definition of LVR, but they should understand the concept of debt as a percentage of property value...which they generally do!.
  • Stuart | 28 May 2012, 09:53 AM Agree 0
    What a ridiculous study. I am a little surpised that only 50% of clients know their interest rates. The reality is that whilst interest rate is the most important factor to a client taking out a loan, they rarely know what their rate is after 12 months with one or two rate movements.

    As to them knowing industry jargon, why would they. The reason they use a broker is so that we can explain these terms to them.

    Whilst these terms may have some meaning to someone taking out a mortgage or refinancing, they have no relevance to a normal home owner the second the loan is finalised hence they are quickly forgotten.
  • Country Broker | 28 May 2012, 11:30 AM Agree 0
    This study missed the point, yes borrowers are often ill informed and we need to cover this off by providing the relevant NCCP documents including the quote which I always go through in detail with the clients .
    what I have found is many client simply do not care! They want to know A; How much a week or a fortnight B; Do I qualify for the loan ? We as brokers must provide the documents under the NCCP and take the time to go through them with the clients , can I make them care or begin to want to understand them - NO ! I wish more cleints would.
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