This month we ask: Are you finding your business is increasingly competing with other brokers, rather than just the lenders?
Clients are better off
There are a lot of brokers out there now, so it's definitely becoming a more competitive industry. However, I think it's the case that there are now more opportunities for potential clients to get the support and service that they require, when a lender might not be able to give them the best recommendations for their own personal needs. Yes, it's more competitive, but at the same time it gives the clients more choice. At the end of the day it's all about the clients. If you've got more and more options, it makes it better for them.
Brad Scott, Aussie
Borrowers going to multiple brokers
A growing number of my clients have either used a broker in the past, or might be talking to a few different brokers during the course of their research. So I definitely think the competition between brokers is increasing. That's why it's so important to offer my clients more than just a lender, a product or a rate. It's about listening to their particular needs and plans, and offering them a long-term solution that suits them. Taking on the role of their adviser and also offering great customer service is what will encourage customers to choose my services above others.
Beth Peebles, Loan Market
Shift away from banks
There has been a noticeable shift in recent years from our competitors being the lenders to now rival broker groups, both regionally and in our city offices. Customers have a much better understanding of the value proposition brokers present and that is being reflected in the enquiries we receive. I believe it’s also a reflection of the banks removing the authority levels traditionally held by local branch managers and centralising operations where clients now feel like they are receiving less personalised service and advice. I don’t see this changing any time soon, and it obviously will continue in this direction.
Andrew Zobel, Zobel
Broking increasingly competitive
When I started mortgage broking in 1995 the industry was in its early stages. There were relatively few mortgage brokers, and only a small percentage of people even knew about them. The competition primarily came from banks and other lenders. Today, many people have a mortgage broker friend or colleague they can recommend, and it has become common for prospective clients to have spoken to several mortgage brokers. This means there is increasing competition to source leads from a limited base of referral points, and that more than one mortgage broker is regularly trying to win the broking business of a borrower by offering competitive client servicing, and product and technical knowledge.
Cathy Fry, Our Mortgage Broker
Peers not competitors
Today, the third-party distribution channel writes more than 52 per cent of all loans, and that percentage will continue to increase as more customers appreciate the broker proposition. With that said, I believe there is more than enough work out there for brokers, even as the industry grows. I do not see other brokers as my competition, but as my peers. Data from the ABS shows more than $33 billion in home loans are written every month. And, given that interest rates continue to hover around record lows, it is reasonable to assume that demand for housing finance will remain strong for the foreseeable future.
Bob Korver, Mortgage Choice
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