A new report, ‘The Value of Mortgage Broking’, released this July by Deloitte Access Economics, has found that Mortgage Brokers increase competition and choice for customers, which brings a swag of benefits to the consumer, and the larger economy.
Mortgage Brokers began emerging in Australia in the mid-1980s, and now 55.7 per cent of loans are arranged by Brokers.
There’s no doubt that more people are using Mortgage Brokers now than ever before. But why?
Brokers increase competition
More Brokers in the market work in the consumer’s favour because there is more competition, and therefore better financial outcomes for customers.
A Mortgage Broker is interested in matching the customer with the most appropriate loan product, rather than working on behalf of a specific lender. This means a Broker looks at a large cross-section of loan products in the market. The Broker will assess competitive rates, and suitable terms for the customer. It’s therefore in the lenders’ interest to provide competitive rates and a greater range of products.
Smartline’s panel of Lenders encompass a wide variety of Lenders, including but not limited to:
While big banks still offer the majority of residential home loans, smaller lenders and foreign lenders are also competitive in the market.
Brokers increase choice
One of the advantages of using a Mortgage Broker is that customers are able to choose products that suit their specific needs, and with guidance. Every person is usually unique in one way or another and a Mortgage Broker will take this into account assessing the market, and find the most competitive option.
Consumers have choices about whom to borrow from, what type of product to use, and how the repayment schedule will play out. More choice can even lead to consumer savings.
Brokers help increase consumer confidence
In addition, the Deloitte report found that sitting down face-to-face with a Broker helps customers improve financial literacy and make positive financial decisions. It also helps customers better understand their obligations.
With regulations tightening in the financial sector due to increased scrutiny from regulators, it’s more important than ever for consumers to get help navigating the minefield of lender policy and loan product changes.
Book a chat with me to discuss suitable options for you.
Scott Stevenson – 0409 789 427