New research has revealed Australians are motivated to use a mortgage broker because of their expertise and ability to deliver value and secure a loan.
In June, Mortgage Choice commissioned research agency Honeycomb Strategy to survey more than 1,000 Australians who have used a mortgage broker. The results revealed that 83% of borrowers were motivated to use a broker because they have the expertise needed to find the right home loan.
Mortgage Choice found 71% of borrowers were also motivated to use a broker because they delivered value and 55% were motivated by the broker’s ability to secure a loan.
The broker franchise network also found 53% of survey respondents who identified as owning three or more properties said they saw a great benefit in using a broker to assist with complex loans, while 68% of borrowers over the age of 65 listed securing a loan as one of their motivations for using a broker.
The survey also showed that 35% of borrowers under the age of 35 said guidance during the home purchasing process was one of the most important roles of a broker.
Mortgage Choice CEO Anthony Waldron (pictured above) said the findings told a compelling story as to why more Australians continued to seek the services of mortgage brokers.
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“As people progress through the home buying journey, there’s a clear need to talk to someone with expertise about their financing options,” Waldron said. “Customers can feel confident a broker’s knowledge and nous will find the right loan, as well as make the loan application a smooth and less stressful experience.”
Waldron said on top of ensuring they received a competitive interest rate and access to the best deals, more than 40% of those surveyed expected their broker to show extensive industry knowledge and to do most of the work in the loan application.
“They also believe using a broker will help them save time and will increase the likelihood of having their loan approved,” he said. “Understanding borrowers’ expectations goes a long way to help deliver quality customer service - which in turn will help create a successful broking business.”
Waldron said of the respondents who had used a broker to refinance, 71% said they had always used a broker.
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“This highlights the sticky nature of the broker-client relationship and why being capable of meeting clients’ needs at every step will go a long way to retaining customers long term,” Waldron said. “It is crucial that aggregators provide ongoing support and training to strengthen their brokers’ capabilities so they can continue to meet borrowers’ expectations.
“Mortgage Choice empowers its franchises through a comprehensive learning and development program that focuses on the customer and the pillars of broker success – everything from lending and systems through to business management.”