Why use a Mortgage Broker

Mortgage insurer Genworth Financial recently released its third mortgage trends report. From that report we learn that Australians are keener than ever to own their own homes and are looking to lenders to offer a range of simple products. Also mentioned is the fact that mortgage brokers are on the right track when it comes to customer service.

Most brokers have encountered enough preconceptions and misconceptions about their chosen line of work to last a lifetime; but Genworth's latest mortgage trends report has shed some light on some of the more positive perceptions out there.

"In general, borrowers are happy with their broker service," said Alan Shields, research director of Retail Finance Intelligence.

The report is an unbiased and independent review of the Australian mortgage industry (Genworth insures loans for well over 200 lenders), which looks at all sorts of trends with a focus on property ownership, entry into the market and managing debt.

According to the report, 32% of people used a mortgage broker for their most recent loan, up 3% from last year.

The report found that motivation for choosing a broker varied, but the most popular response was that customers felt they would get a better deal.

Fifty-five per cent of respondents thought using a broker would allow them to save money, while 46% thought a mortgage broker would save them time. "Beyond a better deal, it's all about convenience," said Shields. Consumers said they appreciate the fact that brokers will see them outside of regular bank hours.

Perceptions about traditional services offered by banks appeared to have a bearing on homebuyers' decisions to use brokers in other ways as well.

For example, 36% of respondents chose mortgage brokers because they wanted independent advice, while almost as many respondents said they wanted a wider choice of products than offered by a single lender. Just over a quarter of respondents did not think they could qualify for a mortgage from certain lenders, and wanted help finding one that would accept their application.

"One in three mortgages is broker-originated," said Shields. "Now if you look at some of the non-bank lenders, that number goes up significantly."

Guidance, also, was a reason for the use of brokers, with 35% of borrowers saying they found the number of products on offer confusing, and simply wanted some sound advice.

"Obviously, individuals have very high expectations when they choose a mortgage broker," said Shields. "So it's interesting to see if people are satisfied with their mortgage broker."

And the answer is an overwhelming yes. The vast majority - 89% - were at least satisfied with the service they had received, while 54% said they were "very satisfied ".

"So mortgage brokers do promise that they'll save you time, they do promise that they'll be able to give you a view on a selection of home loans," said Shields. "And it clearly seems that customers feel mortgage brokers are delivering."

Genworth's mortgage trends report bodes well for brokers who are willing and able to interpret the numbers and put a plan into action.

So call us now and let Call 4 Cash start saving you time and money.

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