Australians are increasingly seeking expertise from mortgage brokers when purchasing a property, new research has revealed.
According to joint research from Mortgage Choice and CoreData published in their Evolving Great Australian Dream 2018 whitepaper, 28.2 per cent of Australians visited a mortgage broker when purchasing a home or investment property, up from 16.2 per cent last year.
Further, 43.5 per cent of home buyers aged between 25 and 45 saw a broker before purchasing a property, up from 30.1 per cent last year.
The proportion of home buyers visiting their financial institution, however, dropped by 16.5 per cent in the same period, from 60.7 per cent to 44.2 per cent.
When analysed on a state-by-state basis, Western Australians were most likely to use a broker before committing to a purchase, with 36 per cent of buyers in the state seeing a mortgage broker when buying a property. This was followed by New South Wales at 30 per cent.
“For many Australians, the first point of contact in the home buying journey is the lender they currently bank with, but our data shows that the use of mortgage brokers continues to rise,” Mortgage Choice spokesperson Jacqueline Dearle said.
“We have seen a 12 per cent jump in the proportion of property buyers seeking the services of a mortgage broker for their home loan needs, which is an encouraging indication that consumers are seeing great value in what brokers have to offer.”
Ms Dearle said that she believes home buyers are flocking to brokers to make sense of the increasingly complex mortgage market.
“In today’s increasingly competitive mortgage market, there are so many changes which makes searching and applying for a home loan a daunting and complex process, even for experienced borrowers.
“Mortgage brokers can save borrowers time, hassle and possibly money by finding a suitable solution for their individual financial situation and goals and taking the legwork out of the application process.
“Compared to a financial institution that can only offer a particular home loan product, a mortgage broker has access to an extensive panel of lenders, so they can compare from a wide choice of mortgages.
“In addition, a broker provides reassurance and guidance through the home loan application process, from application to approval through to settlement, and they will take the time to educate customers about the market.”
Ms Dearle also noted that she predicts home buyer demand for mortgage brokers will continue rising.
“As our data has shown, consumers know and see value in what brokers have to offer in providing choice, better customer service and expert credit advice.
“Consumers also know that at the end of the day, they are getting a competitive home loan product that is tailored to their unique set of circumstances and goals.
“With many benefits to be had, I would expect consumer demand for mortgage brokers to remain strong in the coming years.”
[Related: Brokers unfazed by rise in online players]