Login
ISCOVER
New lender research has discovered that commissions are a minor consideration for 95 per cent of brokers.
Not one broker said commissions were the main reason they would recommend one bank over another, according to a survey conducted by HomeStart Finance, South Australia's government lender.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Only five per cent of respondents nominated commissions as their number two or three priority.
The main reason for brokers to recommend a lender was based on how the lender's product fitted with customer needs – 58 per cent chose that as their top priority and 80 per cent placed it in their top three.
The ease of the loan process was also highly valued, with 65 per cent of brokers placing it in their top three considerations.
However, minimal value was placed on relationships: only two per cent regarded having a long-standing relationship with a lender as one of their top three considerations.
HomeStart chief executive John Oliver said the research shows that brokers understand the importance of meeting customer needs.
"Word of mouth and referrals are an important driver of new business and the only way you are going to achieve these is through satisfied customers," he said.
Meanwhile, Mr Oliver said HomeStart Finance had increased its third-party loans by more than 50 per cent in the past two years.
He attributed this to a growing customer need for more flexible home loan options, as well as demand from brokers for lenders that offer innovative lending.
[Related: Homestart unveils 97pc LVR loans aimed at students]
