New research reveals that three in 10 aspiring homebuyers start their financing journey by going to a mortgage broker for help in securing a loan.
Mortgage brokers offer more choice and savings to homebuyers by introducing competition in the industry. “Without mortgage brokers, the major lenders would have no incentive to offer innovative lending products or better interest rates; the non-major lenders would be shut out of the industry due to their lack of retail network which is essential for customer engagement; and customers would have to work directly with a single lender to get a home loan and just accept whatever that one lender tells them is the best rate,” explains Siobhan Hayden, COO, HashChing.
It is not surprising that more than a quarter of homebuyers meet a mortgage broker when planning to buy a home or an investment property, up from 16 percent last year. At the same time, aspiring homebuyers who consulted their current financial institution first dropped to 44.2 percent from 60.7 percent last year.
Mortgage brokers add a lot of value to an aspiring homebuyer’s journey. According to Maile Carnegie, ANZ Group executive of digital banking, brokers play an important role in improving the customer experience. “I think a lot of people think, in a very common way, that people go to brokers just for price, when in reality people go to brokers for many things, including helping them navigate through the system,” she says.
The rise of the mortgage broker
The results of ANZ’s HY18 revealed that 56 percent of its mortgage flow came through the broker channel. During the same period, brokers accounted for 68 percent of Suncorp’s home loan portfolio, up from 65 percent recorded in the first half of the previous year.
Today, the mortgage market is a highly competitive place. This is good for borrowers because there are several competitive home loan deals out there to grab. However, most borrowers are not even aware of the 100 plus lenders in the Australian mortgage market, which means they are potentially losing out on some great rates and service.
Enter the mortgage broker – and you have the perfect channel to apprise homebuyers of the latest deals from both major and non-major lenders.
Mortgage brokers offer their customers convenience, choice and savings by finding suitable home loan products mapped to their financial situation. In addition, mortgage brokers do all the legwork on their clients’ behalf, from lodging the home loan application to settlement, ensuring the funds are disbursed in a timely manner. Another vital function undertaken by mortgage brokers is of educating their clients. Professional brokers understand and analyse the financial condition of each of their customers before advising them on the level of mortgage repayments they can afford depending upon their income, day-to-day expenditure and debt level.
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In case you are planning to buy a home or an investment property, here are five ways in which a mortgage broker can empower you:
- Brokers have access to better interest rates and discounts
- Brokers offer you a wider choice of lending products
- Brokers are industry experts who can match you with the best-fit loans for your situation
- Brokers speed up the financing process by preparing and lodging your home loan application in a timely manner
- And, last but not the least, except in very complex cases, broker services are FREE
Brokers save you time, hassle and money
Getting approved for a home loan could be a breeze if you have the right mortgage broker by your side. From helping you pick the right home loan to filling your home loan application correctly and lodging it promptly, your mortgage broker would handhold you throughout the process of financing your home.
Today, nearly 60 percent of all new residential lending in Australia is introduced through mortgage brokers. Most lenders predict this number to grow in the future. And why not? A properly structured home loan with the right features can save you thousands of dollars in the long run, and your mortgage broker is poised to offer you a deal that is tailored to your financial condition and goals. Speak to a mortgage expert.
HashChing is an online mortgage marketplace that enables Australian homebuyers to compare broker pre-negotiated home loan rates online. Aspiring home borrowers can get in touch with our verified broker partners online to have their queries answered by experts in a transparent manner, free of cost. Browse our broker database.
By Vidhu Bajaj,
HashChing Content Writer