In light of the recent banking royal commission and flood of negative publicity for finance institutions, how do Australians now feel about mortgage brokers?
If you go by the new Cutting through the Home Loan Crap report research from Aussie, they feel pretty good about them.
The research found that most Australians still think mortgage brokers make the difficult loan process easier for them.
The research involved a survey of over 2000 Australians this year and 84 per cent of them believed using a home loan expert was beneficial for them.
The main reasons respondents were glad to use a broker were because of their knowledge on bank processes, getting it done faster and knowing how to get them the best deal.
Interestingly, it was the younger Y and Z generations that were keener to use brokers to help them with their loans than older generations.
Over 87 per cent of respondents all agreed the important elements of a home loan experience for them was receiving consistent help, having someone to simplify the process and someone who is across all of the regulations and procedures.
Aussie chairman John Symond spoke to The Adviser about the research findings.
“Today’s property market has all the right conditions, he said.
“It is steady, we have got low interest rates, and national average auction clearance rates are above 75 per cent; however, Aussies could be missing out on this opportunity because they are overwhelmed or confused by the home loan process.”
“Put simply, this is a mortgage broker’s role, so it is unbelievable to me that Australians are delaying buying or refinancing due to the process, which they don’t have to do alone,” he told The Adviser.
“And to be honest, I do not blame them. There is too much jargon and paperwork, that it is no wonder Aussies are confused.”
Mr Symond said it was unfortunate that most people find the loan application process to be a negative one and with the increased scrutiny and sweeping changes that have come in over the last couple of years it was even more important to have someone to guide you through the process.
“A broker can help guide you through the application process and are across the constant change in regulations and lender policies,” he said.