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More than half of mortgage broker clients chose their broker based on tips from family and friends, with a third doing online research, according to new data.
A Mortgage Choice study of 1,000 mortgage broker clients has revealed how and why borrowers choose mortgage brokers to help them with their home loans.
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The June survey, conducted by Honeycomb Strategy, found that more than three-quarters (77 per cent) researched brokers before choosing one.
The majority (57 per cent), said that they went off recommendations from family or friends, however online research was also a common route.
For example, 32 per cent said that they looked online to choose their broker, 29 per cent looked at online reviews, 26 per cent looked at broker websites and 19 per cent used broker comparison websites.
Other common routes to choosing a broker came from referrals from accountants (22 per cent), real estate agents (21 per cent) and conveyancers (14 per cent).
Overall, borrowers were most likely to look for “experience” and “customer testimonials” when it came to choosing a broker, the survey found.
It also revealed that borrowers generally moved quite quickly when choosing a broker.
Sixty-two per cent of mortgage broker customers were found to have selected their broker in seven days or less, with those spending the least amount of time researching moving the fastest to lock in a broker.
Mortgage Choice CEO Anthony Waldron said the findings show there was a sense of urgency from customers when it came to seeking expert advice on their home financing options - and that brokers must act swiftly on their leads.
“While the research tells us 77 per cent of broker customers will do some research when selecting their broker, the decision-making happens quickly,” Mr Waldron said.
“What’s interesting is even after that recommendation from a friend or family member, Australians are likely to go to at least another two sources in the research process,” he continued.
“These additional sources are likely to be an online search, an online review or broker websites. So while it’s vital that brokers are in the conversation around the barbecue, they are also actively managing their Google reviews and maintaining their online social presence,” he added.
Given that new brokers would not have the luxury of relying on experience, the Mortgage Choice CEO said it was essential that they collate positive testimonials and have a strong online presence.
“How our brokers nurture their customers for the long term is critical,” he said, flagging that the survey found that younger borrowers (those aged 18-34) highly valued communication and would be happy to be contacted by their broker on a monthly basis.
“Four in five respondents (80 per cent) in our Honeycomb survey were likely to use the same broker again in the future and this speaks volumes about the industry’s commitment to professionalism and customer service,” Mr Waldron concluded.
[Related: Three-quarters of borrowers unsure how rate hikes impact budgets]
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