We could not resist sharing this mortgage industry article with you today.
It is a rare piece of public recognition (from a major bank) that mortgage brokers are good for clients.
A General Manager from a major bank recently told an audience at the Australian Mortgage Conference that broker clients were, “wealthier and better educated than direct-to-bank clients”.
Here are some interesting points from his speech:
1. A greater proportion of broker clients had full-time jobs compared with direct-to-bank clients.
2. Broker clients were more highly qualified/educated than direct-to-bank clients.
3. There was no discernible difference in credit quality between broker and direct-to-bank clients.
4. This particular major bank places a high value on mortgage brokers because they are introducing “new-to-bank customers”.
5. He also added that brokers were likely to write about 55 per cent of all loans in three or four years’ time, which compares with the 46 to 48 per cent they write today.
“Customers are voting with their feet. They’re using this service because they feel they’re getting trusted advice and they get someone who’s taking the pain out of it for them”.
Mortgage broking has emerged as a rare small business triumph in Australia. A classic example of how free enterprise has delivered better outcomes for clients in terms of savings and service.
It is interesting to note that banks have noticed these changes.
We noticed about 7 or 8 years ago that brokers were no longer seen as the place you go when a bank knocks you back. We are now the first port of call because we have a much better chance of picking a bank that will say yes.
We will continue to work hard at keeping your valued support.