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ISCOVER
Staff Reporter
While first home buyers are more inclined to use the services of a mortgage broker than go directly to a bank, they will not engage the third party distribution channel if they have to pay for advice, new research has revealed.
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According to the latest data from Mortgage Choice, 26 per cent of the 1,000 people surveyed said the mortgage broker was their favoured point of contact for home loan assistance.
This compared to 20 per cent of first home buyers who said their parents were their main source of advice, 18 per cent who plan to speak directly to a lender and 11 per cent who sought help from online loan comparison websites.
Mortgage Choice chief executive Michael Russell said it was great to see so many first home buyers value the advice of a mortgage broker.
“Parents are an excellent starting point for general advice about purchasing a property but with the mortgage market constantly changing, it is crucial that borrowers, particularly those who are less experienced, seek expert assistance to ensure they’re getting a loan suited to their needs,” he said.
“Interestingly, the results showed that the number of first home buyers consulting comparison websites, such as HelpMeChoose.com.au, more than doubled year on year, from 4 per cent in 2011 to 11 per cent in this year’s survey.
“Well informed borrowers who utilise every resource available to help them thoroughly research the property and mortgage markets are more likely to step into the property market sooner.”
That is, assuming the resource doesn’t come at a cost.
More than 50 per cent of respondents said they would not use a broker if they were charged a fee.
“While debate continues to heat up in the mortgage broking industry about the prospect of customers paying a fee for their mortgage broker’s service, Mortgage Choice’s latest research continues to support our decision to not charge homebuyers for our role in helping them to find the right home loan for their needs,” Mr Russell said.
“Based on our consumer research, conversations with our brokers and the condition of today’s housing finance market, Mortgage Choice would like to reassure our customers we are not taking any action on the fee for service front. Our focus is on campaigning for improved consumer awareness of the value proposition offered by a professional mortgage broker.”
