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Broker expertise key for securing right loan: Mortgage Choice

by snichols10 minute read
Broker expertise key for securing right loan: Mortgage Choice

The vast majority of Australians see broker expertise as necessary to secure the right loan, according to new figures published by Mortgage Choice.

The data, which is derived from a June survey of 1,002 broker customers and conducted by Honeycomb Strategy, concluded that delivering the right loan was the top appeal for the third-party channel. 

According to Mortgage Choice’s results, 83 per cent of respondents said they were motivated to use brokers because “they have expertise needed to find the right home loan”. 

More than half (55 per cent) of these same respondents expressed that a broker’s ability to secure a loan was a driving factor to utilise the space. 


Further, 44 per cent and 42 per cent of respondents respectively said they were appealed by brokers due to their “extensive industry knowledge” and how brokers “can do most of the work”. 

However, brokers were also pinned as being essential to securing the most value for borrowers. According to this latest Mortgage Choice survey, 71 per cent of borrowers said they were motivated to use borrowers because the channel ultimately delivered value. 

Further, 53 per cent said they would use a broker to ensure the best rate, while 52 per cent said brokers would provide them access to the best deals. 

Mortgage Choice chief executive Anthony Waldron commented: “As people progress through the home buying journey, there’s a clear need to talk to someone with expertise about their financing options. 

“Customers can feel confident a broker’s knowledge and nous will find the right loan, as well as make the loan application a smooth and less stressful experience.” 

However, the same figures also suggest that brokers were key for borrowers to refinance their homes. Among the 651 respondents who had previously used a broker to refinance, 71 per cent said they had always relied on the third-party channel.

A separate survey commissioned earlier this year by Mortgage Choice reported that less than one in four borrowers felt confident in navigating home loan refinancing

“This highlights the sticky nature of the broker-client relationship, and why being capable of meeting clients’ needs at every step will go a long way to retaining customers long term,” Mr Waldron said on this latest refinancing data. 

“It is crucial that aggregators provide ongoing support and training to strengthen their brokers’ capabilities so they can continue to meet borrowers’ expectations.”

[Related: Borrower hesitance to refinance presents opportunity for brokers]

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Sam Nichols is a journalist at The Adviser and Mortgage Business.


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