Survey reveals mortgage brokers most trusted in home loans
New market research from CoreData has revealed that Australian mortgage brokers are more engaged with customers than banks or credit unions.
The survey saw mystery shoppers visiting mortgage brokers, banks and credit unions, scoring them over a range of criteria – and brokers came out on top, with a score of 77, higher than both banks (74.1) and credit unions (73).
The criteria used for judging was assurance (the comprehensive knowledge of loan products), compliance, quality, understanding, intention, reaction and environment. Brokers – 94% of which reported they were MFAA members – scored higher than banks and credit unions in the majority of categories, especially compliance, intention and understanding.
“We are not surprised by the service-related scores from brokers, because 41% of all Australian mortgages are written by brokers and well in excess of half of all new loans are broker written.
“In addition to the requirements of the NCCP, MFAA approved brokers are required to adhere to the MFAA Code and Disciplinary Rules, which require a higher standard than the Act.”
Naylor says these results also make a mockery of the Australian Consumers Association’s claim that consumers were poorly served by mortgage brokers.
Head of mortgage research at CoreData, Andrew Inwood, said the mystery shopper survey of home lenders was in its sixth year and brokers had been a consistent favourite of consumers.
“Brokers put extra effort into knowing their customers and performing for them,” Inwood says. “Brokers’ income is linked to completing the loan, so they have the fastest speed-to-market for borrowers while also being the most efficient sales channel for many banks.”
