The number of home loan borrowers going to a mortgage broker first is on the rise, while at the same time the number of people going to their financial institutions is falling.
According to the Evolving Great Australian Dream 2018 whitepaper by Mortgage Choice and CoreData, around 30 per cent of home buyers are seeking out a mortgage broker for help with their loan.
That’s up from 16 per cent last year, while the proportion of borrowers seeing their financial institution first dropped from 60 per cent to 44 per cent.
Mortgage Choice’s Jacqueline Dearle told Broker News said the number of people going to financial institutions first was changing.
“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,” she said.
“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.”
The whitepaper data showed that the use of mortgage brokers rose across all age groups, with those aged under 45 the highest users.
Ms Dearle told Broker News that mortgage brokers will continue to be popular with 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 said.
“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,” she said.