As the next generation of property buyers begins to dominate the market, the market share of brokers is likely to rise, a new survey suggests.
The 2015 QBE Barometer report, which randomly surveyed 1,014 mortgagors or consumers intending to take out a home loan, revealed that two in three (63%) consumers would go direct to a lender while just over a third (37%) would use a broker.
However, the data suggests that the number of consumers who choose to use a broker is likely to rise as younger generations begin to penetrate the property market.
The report reveals that younger respondents were more likely than older respondents to go through a broker, with 39% of those under 45 years using a broker, compared to 31% of those over 45 years.
Further, the number of people surveyed who rejected dealing with banks has increased significantly compared to last year, from 9% to 16%. While this hasn’t affected the share of mortgage lending currently, with the number of respondents choosing to go direct to a lender remaining steady overall compared to last year's survey, the report does admit that “it may be an early indicator of future sentiment if the trend continues”.
Jenny Boddington, financial institutions EGM and CEO of QBE LMI told Australian Broker
that mortgage broking has been hugely benefitted by regulation, specifically the introduction of the NCCP in 2009. As a result, younger people are likely to look upon the mortgage broking ‘brand’ more favourably than older generations, and are more likely to use a mortgage broker.