A study commissioned by the Mortgage and Finance Association of Australia (MFAA) has found that customers who engaged a mortgage broker to secure their home loan were more satisfied with their experience than customers who went direct to a lender.
The findings come as no surprise to Mint Equity. As Mortgage Brokers working with clients throughout Sydney and the Central Coast, we often have clients seeking our services following a bad experience with a bank or lender.
Customers want personalised service
The study also found that customers chose to go via a mortgage broker because of the support throughout the mortgage process. This is a true strength of mortgage brokers because they provide a personalised service and take a supportive role.
Mortgage Broker customers more satisfied than direct to lender customers
Being a boutique, family run business, Mint Equity values the personal relationship with their customers resulting in 95% of business coming from repeat customers or referrals.
Why customers prefer mortgage brokers?
Get things done faster
A number of participants expressed the view that it was simpler and easier to go through a mortgage broker as they perceived that brokers received special treatment from financial institutions and could get things done faster than a banker in a branch. Mint Equity is either a platinum or premium broker with many lenders, which means we have the ability to fast track applications or discuss detailed credit criteria directly with the lender’s decision maker. This gives us a higher rate of approval conversions.
Approval rates higher
Many also felt it was more efficient through a broker as they felt that a broker will know which banks are likely to approve their specific loan application circumstances. Many also felt it was more efficient through a broker as they felt that a broker will know which banks are likely to approve their specific loan application circumstances.
No upsell
Direct to lender customers placed higher value on having the product features that they needed. However, there was a perception by direct to lender customers that they were pushed more complex products than needed and that they then had to pay more.
Better communication
More than 90% of customers through either channel felt they were kept informed during the process. However broker customers had a higher rate of being informed at all times (50%) compared to direct to lender customers (39%).
Mortgage Brokers the ‘Go-to’ for advice
Brokers were valued for the perceived ‘value-added’ services of being a ‘go-to’ for advice during and after the process. Additionally, they were valued for their perceived independence from the banks, for their ability to shop around a variety of lenders, and the value of their up-to-date knowledge of the markets and product options. Mint Equity is honoured to be considered by many customers as ‘their broker’.
Only 5% would use online mortgage services
When asked if they would consider doing the entire loan application process online in the future, some 30% said they would consider it. However, when asked if they would use the same channel again, some 95% said they would use either a broker or go direct to the lender with less than 5% saying they would instead do it directly online.
This highlights the gap between customers saying they may ‘consider’ online compared to less than 5% saying they would use it. Whilst digital disruption is a buzz phrase in the mortgage world, in reality, customers just want expert, accessible and personalised service, that a website just can’t provide.
How Mint Equity satisfies customers
As mortgage brokers covering Sydney metro, the North Shore, Gosford and the Central Coast, Mint Equity gives customers easy access to expert and free mortgage broker services.
We save you time, simplify the mortgage process and reduce the risks of mortgage application declines by drawing on 23 years of banking and credit experience.
We provide our clients with free property reports and free credit checks, so our customers are informed from start to finish.
On top of all that, our services are free of charge as we’re remunerated by the lender you select.
References: Customer Experiences of Using Mortgage Brokers - Market Research Report prepared for the Mortgage & Finance Association of Australia – October 2016