The mortgage broking industry stands to benefit from an increase in confidence from home buyers, who are again seeing the benefits of using broker services.
The latest Bankwest/Mortgage and Finance Association Home Finance (MFAA) Index, has revealed the preference for mortgage brokers by first time buyers has increased from 30.8% in the last survey to 32.7%. Satisfaction with mortgage brokers has also increased to 7.5 out of 10 from 7.0 a year ago – widening the lead over the banks.
“This is a great result and we look forward to working closely with brokers to keep them at the forefront of buyers’ minds,” said Mr Aaron Milburn, Bankwest Head of Broker Sales.
“Interestingly, the research shows it’s the 30 to 39 year olds who will mostly likely use a broker, with just over a third (38.8%) saying they’d go straight to a professional when seeking out a home loan.”
“Findings from the Index clearly show mortgage brokers have regained the confidence of consumers; they now need to differentiate themselves from banks and non-lenders and stay ahead of the curve,” said Mr Phil Naylor, CEO, MFAA.
“Whilst the majority of consumers are still selecting banks as their preferred loan source, there is visible improvement in the broker market,” he added. “The challenge for brokers is to continue offering services desired by consumers and delivering these with professionalism.”
But Brokers also need to focus on fighting off competition from the non bank lenders. Satisfaction with this group and has grown from 6.4 points out of 10 in the last survey – to 7.4 out of 10.
“Mortgage brokers still beat the banks across all aspects and topped overall satisfaction. The main reasons for choosing brokers included knowledge of personal circumstances, having a reliable contact point and keeping rate increases to a minimum,” added Mr Naylor.
“Understanding of broker services is bouncing back steadily, however we still have a lot to do to achieve the same level of awareness observed in November 2007.”
Perceived consumer benefits include; undertaking the groundwork (76.4%), offering a wide loan range (72.4%) and expertise in a range of mortgages from numerous lenders (72.0%).
According to Mr Naylor, “There are significant changes taking place in the credit industry today – all of which are evolving the broker market rapidly.”
“We believe consumer demand will help steer the broker industry into a future of higher professional standards and ethics.”
“MFAA is at the forefront of the mortgage industry, continually striving to redefine professional standards and setting benchmarks beyond conventional industry measures. Our members will now be required to meet certain educational standards and adhere to a code of professional conduct that governs professional obligations and practice standards for all members.”
“Ultimately, it will be consumers who will benefit from selecting an MFAA member – feeling reassurance and comfort in knowing that organisation displays the highest levels of professionalism and education,” added Mr Naylor.