New research has confirmed non-major banks are continuing to gain traction with mortgage brokers.
MyState Bank’s latest broker survey showed 40% of brokers have written over half of their home loans with non-major and regional banks over the past 12 months.
Two-thirds of brokers attributed the surging demand for mortgages from non-majors to strong broker service proposition.
MyState GM of banking, Tony MacRae said, “Challenger banks rely on the independent broker channel for growth and have recently upped their game when it comes to servicing the needs of brokers and their customers.
“We expect challenger banks to further chip away at major banks’ market share as a result of shifting demand from brokers and borrowers.”
More than half of brokers (53%) noted the closing interest rate gap seems to have consumers confident smaller banks are as competitive as majors when it comes to rates.
Further, 27% of the brokers said their customers did not want to take out a loan with one of the big four, while 10% said they were intentionally working with a broader range of lenders to minimise risk in case the majors decided to move away from the broker channel.
The mortgage brokers that settled loans in the last six months were also asked how likely they were to recommend MyState Bank to a customer, earning a NPS of +56.
“Competitive rates, faster application processing times and stronger brand awareness among potential customers are driving high levels of satisfaction among our mortgage brokers,” said MacRae.
“Our mortgage broker channel is crucial component of our business and we will continue to invest in this channel as a measure of the value we place on this partnership.”