Six in 10 choose their broker within one week

Sixty-two per cent of mortgage broker customers select their broker in seven days or less, a new Mortgage Choice study has found.

And the less research borrowers conduct on mortgage brokers, the more likely they are to make a quick decision about the person who will guide them through the home loan process.

Mortgage Choice CEO Anthony Waldron said the findings show there’s a sense of urgency from customers to seek expert advice and that brokers must act swiftly on their leads.

“While the research tells us 77% of broker customers will do some research when selecting their broker, the decision-making happens quickly,” said Waldron.

The Mortgage Choice-commissioned survey of more than 1000 Australians who have used a mortgage broker also found that 57% rely on friends and family recommendations when researching brokers.

“What’s interesting is even after that recommendation from a friend or family member, Australians are likely to go to at least another two sources in the research process,” said Waldron.

“These additional sources are likely to be an online search, an online review or broker websites. So while it’s vital that brokers are in the conversation around the barbecue, they are also actively managing their Google reviews and maintaining their online social presence.

“Mortgage Choice’s franchise model offers a wealth of national and local area marketing support, including the resources you need to build a strong online presence.”

The June survey, conducted by Honeycomb Strategy, reveals that experience and customer testimonials were considered the two most important pieces of information borrowers are interested in when researching brokers. New-to-industry brokers won’t be able to rely on experience, which makes positive testimonials essential, said Waldron.

REA Group’s Residential Consumer Omnibus survey for June–July 2022, which aims to understand the intentions of property seekers, showed that homebuyers aged 18 to 34 were more likely to seek advice from a mortgage broker when assessing their borrowing and spending power. This same age cohort in the Mortgage Choice-commissioned survey highly valued communication, saying they would be happy to be contacted by their broker on a monthly basis.

“How our brokers nurture their customers for the long term is critical. Four in five respondents (80%) in our Honeycomb survey were likely to use the same broker again in the future and this speaks volumes about the industry’s commitment to professionalism and customer service,” said Waldron.