Customer satisfaction with mortgage brokers is increasing, and homeowners are more financially savvy than ever before, are just some of the findings from the latest Mortgage Industry Association of Australia (MIAA) and BankWest Home Finance survey.
The Australia-wide survey, conducted in December 2005, also found homeowners see much more benefit in paying off a mortgage than renting, and are confident that they will pay off their mortgage sooner than specified in their loan terms.
Survey highlights include:
- Nine in ten respondents said they did not encounter any problems or difficulties when dealing with a mortgage broker or credit union, compared to eight in ten in the previous research (undertaken in May 2005). In the latest survey, banks and non-bank specialist lenders scored an 80 per cent satisfaction rate.
- Brokers remain the second most likely choice for a home loan, after banks.
- Forty per cent of respondents said they chose brokers because they shopped around and found a better deal.
- More than half of those with a mortgage have renegotiated their home loan in the past five years, and 80 per cent of those who changed providers said they have benefited from the move.
- The major reasons for changing mortgage providers were lower interest rates, lower fees and better loan conditions.
- Eighty-six per cent of homeowners are confident of paying off their mortgage sooner.
MIAA Chief Executive Officer, Phil Naylor, said the survey indicated homeowners today are confident enough to turn to non-traditional sources for the deal that best suits their needs.
"The fact that 53 per cent had refinanced in the past five years indicates consumers are becoming more savvy when it comes to taking control of their finances, despite general concerns such as rising interest rates, the rising costs of living and job security. The main reasons for refinancing were home renovation, a more compelling deal or rate, and investment property purchase", Mr Naylor said.
BankWest Head of Broker Sales, Phil Colton, said `shopping around' was becoming commonplace as consumers showed greater awareness of the products and opportunities available to them.
"Consumers are not only becoming more proactive in finding the loan that best suits their needs, they are looking for a better deal. As a result, many will want assistance from someone with industry expertise, such as an MIAA accredited broker", Mr Colton said.
"For earlier generations of homebuyers a mortgage was a case of set and forget, but today's homebuyer, who has the financial confidence to adjust or replace their loan when conditions change is more likely to demand more from their home loan. They use a broker's expertise to recommend a loan which suits their lifestyle and helps them achieve their financial goals".
Mr Naylor said brokers' ability to take away some of the legwork for customers who are looking for a better deal gives them the edge over other loan providers.
"With customer satisfaction levels higher than ever, brokers are clearly meeting their clients' needs by keeping abreast of the rapid growth of products available and maintaining the customer focus they are renowned for", he said.
The MIAA / BankWest Home Finance Survey December 2005 was carried out throughout Australia on behalf of the MIAA by Worthington Di Marzio, interviewing 500 householders in metropolitan and rural areas, who had either taken out a home loan or refinanced in the past seven years or intended to take out a home loan in the next seven years.
