Opinions of family and friends vital, survey reveals
Customer testimonials and the experience levels of brokers are considered the two most important pieces of information when borrowers are searching for a broker, Mortgage Choice survey results show.
Conducted by Honeycomb Strategy in June (with the results released in August), the survey of more than 1,000 Australians who had used a mortgage broker shows 62% of broker customers chose the broker they wanted within a week of looking.
The less research borrowers conducted, the higher the likelihood that they could make a fast decision about the person who would guide them through the lending process, Mortgage Choice said.
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Mortgage Choice CEO Anthony Waldron (pictured above) said the findings showed that prospective borrowers typically undergo a “sense of urgency” to seek expert advice, and that brokers “act swifty on their leads”.
“While the research tells us 77% of broker customers will do some research when selecting their broker, the decision-making happens quickly,” Waldron said.
The research findings also showed that when researching brokers, over half (57%) relied on recommendations from friends and family, he said. After those recommendations, Australians would typically go to least two other sources as part of the decision-making process.
“These additional sources are likely to be an online search, an online review or broker websites. So, while it’s vital that brokers are in the conversation around the barbecue, they [need to] also be actively managing their Google reviews and maintaining their online social presence,” Waldron said.
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Experience and customer testimonials were considered the two most important pieces of information of interest to borrowers when researching brokers, he said.
“New-to-industry brokers won’t be able to rely on experience, which makes positive testimonials essential,” Waldron said.
Broker franchise network Mortgage Choice is part of digital property advertising giant REA Group, which conducted a residential consumer omnibus survey in June to July 2022, with the aim of understanding property seekers’ intentions.
Results showed that home buyers aged between 18 and 34 were more likely to seek advice from a mortgage broker when assessing their borrowing and spending power. This same age group in the Mortgage Choice-commissioned survey valued communication highly, saying they would be happy to be contacted by their broker on a monthly basis, Mortgage Choice said.
“How our brokers nurture their customers for the long term is critical. Four in five respondents (80%) in our Honeycomb survey were likely to use the same broker again in the future and this speaks volumes about the industry’s commitment to professionalism and customer service,” Waldron said.
Mortgage Choice recently launched a new TV campaign, called You’re Never a Loan.
As borrowers managed rising interest rates and cost-of-living increase, Waldron said the campaign showed Australians that mortgage brokers were there to support them, and make their property dreams possible.
That may be through getting the best deal on their home loan – or ensuring their repayments are manageable, he said.
The campaign, which airs on Channel 9 and Network 10, aims to bring to life five customer stories, which are centred around an expecting couple looking to buy a first home, a parent looking for more space for their family, a young professional house hunting close to the city and a family in search of a tree change.
