Today, nearly 60 percent home loans in Australia are settled through mortgage brokers. Most lenders predict this number to grow in the future. Indeed, brokers have turned the mortgage lending industry around. By offering borrowers home loan products matched to their requirements from several lenders, they have enabled Australian home borrowers to make informed choices, saving much more money in the process.
Getting the most out of your home loan
Many home borrowers in Australia prefer to deal with a mortgage broker to arrange their home loan. The reason? Well, for starters, mortgage brokers have access to home loan deals from various lenders, including non-major banks and credit unions. This means borrowers can access potentially cheaper deals from smaller lenders they might have otherwise missed out upon, had they visited one of the popular banks directly.
“I was pleasantly surprised to land the perfect home loan deal with a non-major bank, thanks to HashChing. The rate I am currently paying is one percent lower than the loan I was previously considering,” says Natalie, a satisfied HashChing customer. “Once I compared the home loan rates, I searched the internet for information about my current lender, as I had not come across their name before. It turned out to be a reputed bank, and I am quite happy with their services,” she adds.
Natalie was also impressed with the services offered to her by her mortgage broker, who patiently explained to her the various features, such as an offset account, that she could opt for in her home loan. From assessing her financial affairs to helping her determine the right type of home loan for her situation, Natalie’s mortgage broker also prepared and lodged her mortgage application, hand holding her throughout the financing process.
There is another reason for the growing popularity of mortgage brokers. In the past few months, many home borrowers have been aggrieved by the out of turn rate hikes by the big four banks. This has led quite a few borrowers to question whether they are on the best home loan deal they can get or not. Such dissatisfaction has prompted many borrowers seeking better home loan deals to turn to mortgage brokers.
Besides, due to increasing regulatory requirements in the industry, the consumer trust in mortgage brokers is only going to grow. According to The Adviser, “Increased regulation will drive professionalism and lift the reputation of Australian mortgage broking. Customers feel comfortable with a well-regulated industry, and they will continue to vote with their feet in 2018 by choosing mortgage brokers over bank branches.”
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A boon for first home buyers
Amidst the cooling property prices in the hot markets of Sydney and Melbourne, the government has given a further push to first buyer activity by introducing the First Home Super Saver scheme. Besides, several states are offering stamp duty exemptions and meaty first home owner grants to those buying their first home in Australia. As lenders make a beeline for attracting first home buyers through competitive rates and offers, mortgage brokers can offer a lot of value to these customers by providing them information about competitive deals and guiding them through the process of financing their home. In return, they can gain lifelong clients and a valuable source of word of mouth publicity.
In addition, the tighter regulatory criteria introduced by APRA on investment lending has pushed many investors to reach out to mortgage brokers. As it becomes harder for investors to secure investment loans at a competitive price, professional mortgage brokers can potentially help them secure better rates in addition to keeping them abreast of the policy changes.
Time for brokers to ace their game
2018 is indeed a year of opportunities for brokers. And while our partner brokers remain busy helping homebuyers save money on their home loans, at HashChing, we are working continuously to provide the best tools and technology to help our brokers manage, and consequently serve, their customers better.
Our AI backed platform learns from broker behaviour to bring them qualified leads regularly, keeping their marketing costs low. However, to maintain accountability to customers, all HashChing brokers must maintain a minimum customer rating of 4/5 to continue receiving leads. We also provide our brokers with an advanced CRM dashboard loaded with all the business tools required to efficiently manage leads through custom reminders, document collection and other digital functions. This not only simplifies client management for brokers but also enables them to service their clients more efficiently, enhancing the customer satisfaction level.
HashChing is an online mortgage marketplace that enables Australian home buyers to compare broker pre-negotiated home loan rates online. Besides, borrowers can get in touch with our verified broker partners or post their queries online to have them answered by experts in a transparent manner, free of cost. Click here to browse our broker database.
By Vidhu Bajaj,
HashChing Content Writer