Australians used a mortgage broker for 69.5% of all new residential home loans in the March 2022 quarter, according to the latest data from Comparator.
This represents a record market share for mortgage brokers. By contrast, Australians went directly to a lender for only 30.5% of new mortgages in the same quarter.
The latest data continues an ongoing trend, with Australians turning to brokers in growing numbers year after year. For example, broker market share was 57.5% in March 2021 and 52.1% in March 2020.
So why are brokers so popular?
According to Mike Felton, the CEO of the Mortgage Finance Association of Australia, it’s partly because brokers successfully implemented meaningful reforms over the years, which earned them the trust and loyalty of consumers.
“Not only does the consumer benefit from the significant choice, experience and convenience offered by a mortgage broker, but on home loans taken out since 1 January 2021, they have been protected by an unrivalled best interests duty, further differentiating the channel and providing yet another compelling reason to use the services of a mortgage broker,” he said.
“In a rising interest rate and cost environment, mortgage brokers are exceptionally well placed to assist customers in finding a fairer deal that is in their best interests.”
Here are three reasons why brokers offer value:
- Brokers have a legal obligation to act in your best interests (unlike banks)
- Brokers compare loans from a range of lenders (not just one)
- In most cases, brokers don’t charge for their service
If you’re on the hunt for a home loan, reach out and I’ll be happy to help.