The MFAA has hit back at claims by consumer group CHOICE that consumers can get a better deal on their mortgage by bypassing brokers.
The claims followed a report by CHOICE last week which analysed three borrower scenarios, concluding that they could save between $18,000 and $46,000 over the life of their loans by not visiting a mortgage broker.
Phil Naylor, MFAA CEO, said CHOICE had failed to acknowledge the other important factors in selecting a loan – beyond the interest rate offered.
“The survey also undersells the important role that brokers can play in helping consumers navigate the often complex and confusing home loan market,” he said.
The CHOICE three person case study conflicts with the findings of more in-depth industry research from a number of credible sources.
Recent research by Genworth Financial across more than 2000 respondents showed that borrowers rely significantly on brokers to source the most appropriate home loan; 39 per cent said they relied on mortgage brokers, and of those 92 per cent were satisfied with their service.
Research conducted by the MFAA and BankWest supports Genworth’s findings.
Independent research of 802 respondents commissioned by the association and bank showed that consumers are consistently more satisfied when using a broker than going directly to a lender to source their loan. 64 per cent of the survey’s respondents said that brokers could find the right loan to suit individuals’ circumstances.
Mr Naylor said a report covering just three consumer experiences was “anecdotal” and could “hardly be defined as empirical research”, in contrast to the MFAA and BankWest’s most recent research.
“It’s clear from our research that the criticism brokers often receive for not being compelled to source the right loan for individuals is overplayed and exaggerated,” Mr Naylor said.
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