In the mortgage world, the market share enjoyed by brokers is built on a foundation of trust, new research by Agile Market Intelligence and the Finance Brokers Association of Australia (FBAA) has confirmed.
According to the Consumer Access to Mortgages 2023 report, an overwhelming 86% of mortgage broker clients expressed trust in their brokers, with 44% indicating “complete trust.”
In contrast, consumers dealing directly with lenders showed lower confidence, with only 73% expressing trust, and a mere 27% expressing “complete trust.”
This trust factor translated into long-term and repeat business, as 83% of mortgage broker clients expressed their intention to seek broker assistance for their next mortgage application.
While this high level of trust is a positive indicator for brokers, Peter White (pictured above), FBAA managing director, noted that the research also revealed potential risks and opportunities for brokers.
“We all know that clients trust brokers because we provide a level of service they will never get from a lender, and we act in their best interests,” White said. “But the research also shows that there are a significant percentage of borrowers who will consider changing, and this goes both ways.”
The FBAA study revealed that a significant portion of borrowers, approximately 25%, who previously engaged directly with a lender for their last mortgage, plan to turn to a mortgage broker for their next application, presenting brokers to expand their market share.
“It’s clear that many direct clients of lenders are disappointed, and we have an opportunity to look after them in the future,” White said.
White cautioned brokers, however, pointing out that 17% of borrowers who applied through a mortgage broker for their last mortgage intend to apply directly to a lender next time.
“We can never take our market and clients for granted, and we should not accept the loss of one in every six clients,” White said. “I believe we can do better, and I encourage every broker to keep improving across every area.”
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