Australians are increasingly seeking expertise from mortgage brokers
when purchasing a property, new research has revealed.
According to joint research from Mortgage Choice and CoreData published in their
Evolving Great Australian Dream 2018 whitepaper, 28.2 per cent of Australians visited a
mortgage broker when purchasing a home or investment property, up from 16.2 per
cent last year.
Further, 43.5 per cent of home buyers aged between 25 and 45 saw a broker before
purchasing a property, up from 30.1 per cent last year.
The proportion of home buyers visiting their financial institution, however, dropped by
16.5 per cent in the same period, from 60.7 per cent to 44.2 per cent.
When analysed on a state-by- state basis, Western Australians were most likely to use a
broker before committing to a purchase, with 36 per cent of buyers in the state seeing a
mortgage broker when buying a property. This was followed by New South Wales at 30
per cent.
“For many Australians, the first point of contact in the home buying journey is the lender
they currently bank with, but our data shows that the use of mortgage brokers continues
to rise,” Mortgage Choice spokesperson Jacqueline Dearle said.
“We have seen a 12 per cent 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.”
Ms Dearle said that she believes home buyers are flocking to brokers to make sense of
the increasingly complex mortgage market.
“In today’s increasingly competitive mortgage market, there are so many changes which
makes 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.
“Compared to a financial institution that can only offer a particular home loan product, a
mortgage broker has access to an extensive panel of lenders, so they can compare
from a wide choice of mortgages.
“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.”
Ms Dearle also noted that she predicts home buyer demand for mortgage brokers will
continue rising.
“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.”
www.theadviser.com.au / “Home buyers increasingly flocking to brokers” / Charbel
Kadib