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Speed and service have emerged as the top priorities for mortgage brokers, according to a recent survey.
In a recent survey conducted during AMP Bank’s quarterly insights seminar in August, mortgage brokers have unequivocally ranked speed and service as their foremost priority when collaborating with banks to support their clientele.
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The survey, based on feedback from over 100 brokers, highlighted that in addition to speed and service (33 per cent), a lender’s product offering (19 per cent) and access to market knowledge and expertise also hold significant importance for brokers (13 per cent).
In addition, interest rates (26 per cent) were ranked as second most important for brokers.
It comes as the Reserve Bank of Australia held the interest rate in October at 4.1 per cent, marking the fourth consecutive month.
While most economists expect the cash rate has reached its peak the central bank remains ‘hawkish’ indicating “some further tightening of monetary policy may be required.”
As interest rates remain high for now, AMP Bank’s head of intermediary distribution and finance Paul Herbert said the feedback demonstrates that brokers require more than just a competitive rate from their bank, with efficient and seamless service also vitally important to help them achieve the best possible outcomes for their customers.
This data aligned with the findings of the latest Broker Pulse survey by Agile Market Intelligence’s research arm, conducted in August, which reflected brokers’ satisfaction levels with their lenders.
The Broker Pulse survey, involving 283 brokers, revealed that 63 per cent of brokers expressed satisfaction with lenders in August, with a record high of 83 per cent satisfaction among non-bank lenders.
Macquarie Bank emerged as the top-rated lender in the broker experience ratings, with a remarkable 92 per cent satisfaction rate over the period spanning June, July, and August 2023.
In contrast, St.George found itself at the lower end of the satisfaction spectrum, with only 52 per cent of brokers satisfied with its services.
In terms of lender usage, ANZ secured the top spot in August, with 43 per cent of brokers reporting their use of this major bank, while Macquarie held the second position with 38 per cent.
These results came amid renewed optimism in the housing market, as indicated by the recent Hotspotting Price Predictor Index (PPI) for spring 2023.
The PPI revealed that seven out of 10 locations across Australia are witnessing positive sales activity, which is expected to drive continued growth in house prices.
Furthermore, home values rose by 0.8 per cent in September, marking the eighth consecutive month of growth in the recovery trend.
This signified a remarkable national index recovery of 6.6 per cent since the trough observed in property prices earlier this year.
The survey findings also underscored the pivotal role of technology in simplifying and expediting the borrowing experience for brokers.
Digital technology has been instrumental in streamlining loan applications, valuations, and identity verification processes, leading to shorter loan completion turnaround times, AMP’s Mr Herbert said.
He highlighted that the full-scale launch of their digitally enhanced application process for loan increases in September has already resulted in a 25 per cent improvement in turnaround times.
Additionally, the deployment of technology such as FASTRefi® is facilitating faster fund disbursements to clients.
[Related: A third of brokers say lodgements are down: Broker Pulse]
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