The number of home buyers going to a mortgage broker first has risen, compared to a fall in the number of people going to their financial institutions.
Three in ten home buyers are going to a mortgage broker for help in securing a loan, according to the Mortgage Choice and CoreData’s new Evolving Great Australian Dream 2018 whitepaper.
The survey results showed that 28% of home buyers saw a mortgage broker first when they purchased a home or investment property, up from 16% last year.
The proportion of consumers seeing their current financial institution first dropped from 60.7% to 44.2%.
Mortgage Choice spokesperson Jacqueline Dearle said while more people may still be going to financial institutions, this is changing.
She added, “We have seen a 12% jump in the proportion of property buyers seeking the services of a mortgage broker for their home loan needs, which is an encouraging indication that consumers are seeing great value in what brokers have to offer.
“In today’s increasingly competitive mortgage market, there are so many changes which make searching and applying for a home loan a daunting and complex process, even for experienced borrowers. Mortgage brokers can save borrowers time, hassle and possibly money by finding a suitable solution for their individual financial situation and goals and taking the legwork out of the application process.
“In addition, a broker provides reassurance and guidance through the home loan application process, from application to approval through to settlement and they will take the time to educate customers about the market.”
According to the whitepaper, the use of a mortgage broker increased among home buyers across all age ranges, with the highest usage coming from those aged 45 and under.
The data showed 43% of Australians aged between 25 and 45 saw a mortgage broker first when buying a property, up from 30% last year.
On a state by state comparison, broker usage was the highest in Western Australia, with 36% of buyers in that state seeing a mortgage broker when buying a property. This was followed by New South Wales at 30%.
Ms Dearle said she expected the popularity of mortgage brokers to continue to be robust among Australian home buyers.
“Whether someone is just starting out on their property journey, or they have purchased property before, the lending environment is increasingly complex, and on top of that, Australians are increasingly becoming time-poor,” she added.
“As our data has shown, consumers know and see value in what brokers have to offer in providing choice, better customer service and expert credit advice. Consumers also know that at the end of the day, they are getting a competitive home loan product that is tailored to their unique set of circumstances and goals.
“With many benefits to be had, I would expect consumer demand for mortgage brokers to remain strong in the coming years.”