WITH the latest round of “bank wars”, Australian consumers believe mortgage brokers are the most trusted providers of home loans, according to new research.
In a mystery shopping survey conducted by market research firm CoreData, mortgage brokers scored 77 over a range of criteria, ahead of the banks (74.1) and credit unions (73).
Phil Naylor, Chief Executive of the MFAA, Phil Naylor, said the results from CoreData reaffirmed the conclusions of previous surveys and made a mockery of the Australian Consumers Association’s claim that consumers were poorly served by mortgage brokers.
Assurance – the measure of ‘comprehensive knowledge of loan products’ – saw mortgage brokers come out on top with a score of 87.6 ahead of banks (85.3) and credit unions (84). In a measure of understanding – ‘ability to understand customer needs’ – brokers (87.5) clearly out-performed banks (78.5) and credit unions (78.1).
Head of Mortgage Research at Core Data, Andrew Inwood, said the mystery shopper survey of home lenders was in its sixth year and brokers had been a consistent favourite of consumers.
“Brokers put extra effort into knowing their customers and performing for them,” Mr Inwood said. “Brokers’ income is linked to completing the loan, so they have the fastest speed-to-market for borrowers while also being the most efficient sales channel for many banks.”
This year’s research reveals that Australian Mortgage Brokers are, at least in the eyes of the consumer – the most efficient and effective mortgage sales engines currently operating and that Credit Unions and Building Societies are the least effective.
What is critical to note in this research is that brokers fundamentally outperform the rest of the market in three critical areas:
- Compliance – brokers tend to be better at meeting the obligations of the credit act and the guidelines of the Credit Ombudsman
- Understanding – brokers tend to take a longer time to understand the needs of their consumers
Intention – that is the desire to go ahead with the loan – with seven out of every 10 initial meetings progressing to the offer stage.