Recent data indicates that slightly more Australian property seekers favour using mortgage brokers over dealing directly with banks and lenders. Brokers initiated $50.19 billion worth of new home loans during the last three months of 2016, according to research done by Comparator that was released by The Mortgage & Finance Association of Australia (MFAA). This amount accounts for more than half of all new home loans originated during this period.
When looking for a home loan, you can either go directly to a bank or lender, or use a mortgage broker to negotiate a great deal on your behalf. Comparator’s research shows that in the last quarter of 2016, more Australian property seekers are in favour of using a mortgage broker.
So is this anything new, and why exactly do more Aussie property seekers prefer using mortgage brokers?
Mortgage broker popularity not a recent trend
As it’s the first time that lending originated by brokers has eclipsed $50 billion in a single quarter, Comparator’s findings indicates that brokers are undoubtedly a popular choice for Australian property seekers. This isn’t a recent trend, either. Mortgage brokers originated over half of new home loans in both the March 2015 and March 2016 quarters as well.
“The market share result for the end quarter of 2016 is just slightly ahead of the comparative figure for 2015, showing that consumers still support the broker position with the majority of residential lending,” MFAA’s CEO Mike Felton told Australian Broker.
“The December quarter result … still reflects solid consumer support for brokers in Australia in the residential lending sector,” Mr Felton continued.
Why are more Aussies choosing mortgage brokers?
The benefit of using mortgage brokers over dealing directly with banks and lenders is that the broker takes out the hassle. Instead of spending excessive amounts of time shopping around for a deal that really meets what you need by comparing all the different offers out there, a broker handles all the negotiation and paperwork for you.
When you use an experienced broker, they have all the information at their fingertips and will negotiate on your behalf. A competent broker also makes an effort to understand your unique situation and the factors important to you, such as flexibility in terms.
Why not jump on the bandwagon? Join over half of Australian property seekers who have decided using a mortgage broker is the way to go. You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.