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Approximately 95 per cent of brokers have seen refinancing borrowers use the channel for the first time, according to the broker association.
The Mortgage and Finance Association of Australia (MFAA) has found brokers have been seeing an increase in the number of new clients using a broker for the first time to “understand options around their home loan”.
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A survey of 466 MFAA members run by the organisation found that, since the beginning of 2023, 95 per cent of brokers have had clients used the channel for the first time when seeking to refinance their current home loan.
MFAA chief executive Anja Pannek said the number of new clients seeking the services of MFAA members for the first time “highlights the value of using a broker given the complexity of the lending market”.
The association flagged that the survey also revealed the growing issue of mortgage prisoners with a majority of brokers, with nine out of 10 saying they have clients who don’t qualify for refinancing.
The primary reason brokers’ clients were unable to refinance was an inability to meet servicing requirements, with eight in 10 brokers declaring up to half of their refinancing customers were facing the issue.
Only 5 per cent said it was due to cost-of-living pressures and 10 per cent cited other factors.
Despite this, the survey also found that known instances of clients seeking hardship assistance remained “extremely low”, which the MFAA said indicated that broker clients were “receiving strong guidance on their credit options”.
Mortgage concerns
However, 93 per cent of brokers said their clients were “more concerned about meeting repayments than they were six months ago”.
Ms Pannek said: “We expect this concern about mortgage repayments to increase over the coming months with than 1.2 million borrowers coming off very low fixed rate terms throughout 2023 and into 2024.”
She also said the survey data was key to ensuring the association could accurately represent the industry when meeting with the government.
“The insights from this survey and at the coalface insights of our members, have enabled us to work with government, regulators and Treasury on responding to the current economic environment,” Ms Pannek added.
“The data also highlights the critical role of mortgage brokers for consumers.”
Campaign success
Earlier this year, the MFAA ran a four-week consumer campaign across social media and various news outlets, outlining the advantages of using a broker.
The campaign exceeded the benchmark and reached over 900,000 people across Australia, with 2.7 million impressions, and resulted in over 8,000 additional visits to the ‘Find a broker’ tool on the MFAA’s consumer website, according to the association.
Ms Pannek commented: “It’s clear from the campaign results that our message, which is fundamentally to talk to your mortgage broker, has resonated with consumers.”
[Related: MFAA campaign reaches over 900,000 people]
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