Broker expertise highly sought

August 16, 2022

Australians are most motivated to use a mortgage broker because of their expertise and ability to deliver value and secure a loan, new Mortgage Choice research has found. 

In June this year, Mortgage Choice commissioned research agency Honeycomb Strategy to survey more than 1000 Australians who have used a mortgage broker. The results found four in five (83%) borrowers were motivated to use a broker because they have the expertise needed to find the right home loan. 

Seventy-one per cent of borrowers were also motivated to use a broker because they delivered value, and more than half (55%) were motivated by the broker’s ability to secure a loan. 

Mortgage Choice CEO Anthony Waldron said the findings tell a compelling story as to why more Australians continue to seek the services of mortgage brokers. 

“As people progress through the home buying journey, there’s a clear need to talk to someone with expertise about their financing options,” said Waldron. “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.”  

On top of ensuring they get a competitive interest rate and access to the best deals, more than 40% of those surveyed expect 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. 

Understanding borrowers’ expectations goes a long way to help deliver quality customer service – which in turn will help create a successful broking business.        

“Of the respondents who had used a broker to refinance, almost three-quarters (71%) said they have always used a broker,” said Waldron. “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.  

“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.”  

Additional points: 

• More than half of the survey respondents (53%) who identified as owning three or more properties said they saw a great benefit in using a broker to assist with complex loans.
• Two in three (68%) borrowers over the age of 65 listed securing a loan as one of their motivations for using a broker.
• More than one-third (35%) of borrowers under the age of 35 felt guidance through the home purchasing process was one of the most important roles of a broker.
• Six in 10 (62%) borrowers who primarily speak a language other than English are more motivated to use a broker because it saves time.