Refinancers Trust Brokers More Than Banks
Posted on: 15 Feb 2021

Refinancers Trust Brokers More Than Banks

"As brokers, Inception must act in the best interest of our clients, providing them with the tailored solutions and products for their situation." - Catherine Mapusua, General Manager

A majority of Australian homeowners trust mortgage brokers more than they trust banks when refinancing, according to the results of a new survey from Mortgage Choice.

The survey, which gathered responses from 1,023 homeowners across Australia, showed that around two in five respondents are either in the process of refinancing or are considering switching to a new loan. Among this group, around 94% trust mortgage brokers when it comes to loan recommendations when refinancing.

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On the other hand, more than half are worried that they might not get the best deal when they speak directly to their bank. And roughly the same number said that they feel that banks don’t always have their best interests in mind.

Susan Mitchell, chief executive officer of Mortgage Choice, said while banks can provide borrowers information on their own deals and offerings, they do not have an in-depth understanding of competitors’ products.

“Mortgage brokers not only provide a broad selection of loans across a variety of lenders, they also take the time to explain why a particular loan is being recommended. This is very reassuring for consumers and demonstrates that mortgage brokers work in the homeowners’ best interests at all times," she said.

For 55% of respondents, the biggest advantage of working with a mortgage broker is that they are able to compare loan rates and features. And around 45% said brokers streamline the refinancing process, saving them time and preventing any hassle.

"That is why I urge borrowers in the market for a better deal to engage the help of an experienced mortgage broker to learn what other options they have," Mitchell said.

A study commissioned by the Mortgage & Finance Association of Australia (MFAA), which was released late last year, showed that broker channel has reached highest-ever market share in the third quarter of 2020.

“It is evidence of the ever-increasing trust and confidence that consumers are placing in mortgage brokers as our industry faces the imminent introduction of a Best Interest Duty and related reforms,” said Mike Felton, MFAA CEO.

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Source: Australian Broker 

Tacadena, G. (2021, January 20). Refinancers trust brokers more than banks. Australian Broker News: Industry News for Mortgage Professionals. https://www.brokernews.com.au/news/breaking-news/refinancers-trust-brokers-more-than-banks-275093.aspx