Home buyers are continuing to turn to brokers when it comes to sourcing finance for their purchases with a significant 70% of all new residential home loans now going through a broker according to a recent report commissioned by the Mortgage & Finance Association of Australia (MFAA).
The report showed that between comparable quarters in 2021 and 2022, the number of mortgages written by a broker increased by 20% alone.
Dan Keioskie, Head of Commercial and Private Finance at Growth Point Capital, said he believes this increase is due to the confidence home buyers now have in brokers and their services as well as the complexity and onerous nature of seeking finance directly through a bank.
“Ten years ago only 10% of home loans would go through a broker,” he said.
“That 70% of mortgages now go through brokers shows that home buyers appreciate the knowledge and service a broker can provide.
“In order to service this growing demand, we’ve recently had three new recruits join our residential lending team.
“All of our brokers have all had experience working within the major and non-major banks so they have the advantage of knowing what it is lenders are looking for and how to ensure the process is as efficient and stress-free for the home buyer as possible.”
As quoted in Adviser Magazine, a publication for mortgage and finance brokers, outgoing chief executive of the MFAA, Mike Felton said that the results were indicative of a strong, “successful and rapidly growing” industry that has successfully implemented meaningful reforms over a number of years and has 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.”
To contact our residential lending team, email Head of Client Relations, Edwina Leota on Edwina.leota@growthpointcapital.com.au
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