The latest Mortgage and Finance Association of Australia (MFAA)/ Bankwest Home Finance Index promises a brighter year for brokers, with indications that more first time buyers will enter the market and younger people will prefer to use brokers as the source of their loan.
“Over half of all first time buyers believe that now is a good time to buy a home. The encouraging thing for brokers is that this group are also more likely to visit a broker for information and to source their loan,” said Phil Naylor, CEO of the MFAA.
According to the Index, 42.2 per cent of those aged less that 29 are more likely to use brokers and 31.3 per cent of first time buyers intended to use a broker for their first home purchase.
“One possible reason for these figures is that younger respondents don’t have established relationships with financial institutions and are therefore more likely to explore options and alternatives. This information presents an enormous opportunity for businesses when reviewing their marketing plans,” said Mr Naylor.
Phil Colton, Head of Broker Sales at Bankwest said: “The survey found that first time buyers look to mortgage brokers as an important source of information when researching their home loan options. Brokers ranked third (10 per cent), behind the internet (23.9 per cent) and own research (18.8 per cent).”
In terms of broker satisfaction Mr Colton said that while the figures were slightly down from April 2008, brokers still rated higher than all other home loan sources, with the exception of credit unions.
“Satisfaction with brokers has consistently trended higher than other home loan sources. Since the very first survey in June 2006, brokers have always been more favourable with borrowers.”
Mr Naylor said: “This survey also reaffirmed that consumers want to work with a mortgage broker who is a member of an industry body, with 78.9 per cent saying it was important to find this out before sourcing a loan. This is up from 72.3 per cent recorded in April this year.”