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New research has found that brokers’ mortgage market share is fundamentally built on trust.
In association with the Finance Brokers Association of Australasia (FBAA), research released by Agile Market Intelligence entitled the Consumer Access to Mortgages 2023 report, has revealed that 86 per cent of mortgage broker clients trust their broker, with 44 per cent indicating “complete trust”.
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Contrasting these figures, 73 per cent of consumers that dealt directly with lenders said they had trust in their representative, with only 27 per cent claiming they had “complete trust”.
This research was conducted between 13 and 27 September, using a sample of 1,263 responses that included 776 current mortgage holders and 487 non-mortgage holders.
According to the research, 83 per cent of mortgage broker clients stated they will continue to turn to brokers for assistance for their next mortgage application, indicating that consumer trust leads directly to long-term and repeat business.
FBAA managing director Peter White AM said while this level of trust “may not come as a surprise”, the research has also highlighted some 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,” Mr 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 report further found that there are opportunities for brokers to increase their market share, as 26 per cent of borrowers who applied directly through a lender online said they are more likely to use a mortgage broker for their next mortgage.
“It’s clear that many direct clients of lenders are disappointed and we have an opportunity to look after them in the future,” Mr White added.
On the other hand, 17 per cent of borrowers who applied through a mortgage broker for their last mortgage intended on applying directly to a lender next time, indicating a red flag for brokers.
“We can never take our market and clients for granted and we should not accept the loss of one in every six clients,” Mr White said.
“I believe we can do better, and I encourage every broker to keep improving across every area.”
When compared to the Consumer Access to Mortgages 2022 report, the level of trust has fallen slightly, down from the 87 per cent recorded, and still below the 89 per cent in 2020, however, still up on 2021’s level of 84 per cent.
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