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Despite the presence of online comparison websites, a major brokerage has claimed the online channel won't impact broker market share.
Speaking with The Adviser, spokesperson for Mortgage Choice Jessica Darnbrough claimed brokers should embrace the online channel that some brokers believe is threatening their proposition.
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“There are certain types of consumers who will like to do things online, just as there are consumers who will want to speak with someone face-to-face,” Ms Darnbrough said.
“Brokers should continue to do what they are doing and that is providing tailored mortgage advice to their customers.”
The news comes as a new promotion by ratings site Canstar challenges borrowers to enter their mortgage details to find a cheaper alternative.
Consumers are doing a lot of their research online, highlighting the importance for brokers to have a strong and visible presence in the digital space, said Ms Darnbrough.
“While we can't deny that homebuyers are now far better educated thanks to the richness of online home loan data, I believe the demand for professional face-to-face mortgage advice has never been greater than in today's competitive mortgage market,” she said.
NAB’s executive general manager, growth partnerships, Anthony Waldron agreed that the online channel was more of an opportunity than a threat.
“Yes, it can filter down and give you some choices, but ultimately there is still a component that gets to the point of the consumer needing advice,” Mr Waldron told The Adviser.
“Customers are going to ask more difficult questions: it means some will be more informed, it means some of them will want to do it themselves but for the vast majority, they’re actually going to need more advice, they’re going to need to be talking to people.
“If you walk into a retailer today and you’re wanting to buy a pair of shoes, 20 per cent of people in the store are on their iPhones or their other devices searching for that particular item.
“That’s going to be the same in mortgages as well. But they’re still going to need, fundamentally, advice and that’s a fantastic position for brokers to be in.”
The '10 minute challenge' claims the average borrower has a potential monthly saving of $150, or $1,800 every year.
Mitchell Watson, CANSTAR research manager said "On a 25-year $300,000 mortgage at current average standard variable rates, an extra $150 per month could pay off a home loan around 4.5 years earlier and save a further $41,600 in interest costs".
