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ISCOVER
Jessica Darnbrough
Brokers who are looking to grow their business, should seriously consider tapping into the investor market, new research has revealed.
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According to Genworth’s latest Home Buyer Confidence Index, almost one third of all homebuyers applied for their home loan through a mortgage broker in both March and September 2012.
As a group however, investors were slightly more likely to have applied through a mortgage broker, with 35 per cent of all investors saying they used the third party distribution channel to gain finance.
As per the report, this statistic is unsurprising given investors are generally time poor and less risk averse than other home buyers.
This data corresponds with findings from The Adviser’s Elite Business Writers report, which found Australia’s top brokers tend to write the lion’s share of their business with investors and second home buyers/up-graders.
Of the top 50 elite business writers, 44.7 per cent write the most business with second home buyers/up-graders, while 39.8 per cent said investors are their best clients.
According to the Genworth report, overall, home owners aged between 25 and 34 were the most likely to use a broker to apply for a home loan, with 38 per cent admitting they had employed a broker's services to gain finance in the past.
