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Licensing to drive more broker business

Staff Reporter 4 minute read

By: Staff Reporter

The national licensing laws will improve the way brokers are perceived by borrowers, data from Homeloans Ltd has revealed.

According to the Homeloans Homebuyer Barometer, over 50 per cent of consumers have never used a mortgage broker – but 64 per cent said they were open to using a broker in the future.

“This statistic alone indicates that mortgage brokers have a wonderful window of opportunity in front of them to change consumer perceptions about mortgage brokers and grow their business,” Homeloans general manager, third party distribution Tony Carn said.

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“The introduction of national licensing laws in July can only further assist with improving perceptions about mortgage brokers in the wider community. Our own research also showed that mortgage brokers still have some work to do on their professional images, with consumers’ opinion of brokers – which were in no way negative – appearing to be less positive than we would have expected.

“I believe this is largely driven by the fact that many consumers are unaware of the services provided by brokers, and perhaps they are uncertain about any possible costs involved.”

The barometer also found that when it comes to choosing a mortgage broker, word of mouth plays a strong part.

Sixty seven per cent of respondents relied on referrals from friends, family or a professional service provider, this compared with 13 per cent from the internet, six per cent from TV advertisements and three per cent from newspaper advertisements.

In addition, 43 per cent of respondents saw more than one mortgage broker before making a decision.

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“It’s also obvious that a large percentage of borrowers are receptive to alternative home loan providers, with over 70 per cent of respondents indicating they are very open to dealing with lenders other than a major bank,” Mr Carn said.

Licensing to drive more broker business
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