Recently released data reveals that broker market share grew to an all time high during March. For brokers, this news indicates that more borrowers are looking for better home loan deals that meet their financial expectations.
According to CoreLogic research, mortgage brokers secured around $43 billion in new home loans during the March quarter. This figure was an increase on the last quarter of $3.2 billion. The broker market share of new residential mortgages jumped to just below 54 percent, an increase of almost 2 percent when compared to figures released in the March quarter. This surge being the highest rate ever recorded.
Why More Prospective Home Buyers Use Broker Services
Mortgage executives suggest that constant changes to lending policy, and home loan pricing have increased the appeal of using a brokers service. As for many borrowers, the home loan market is becoming too complicated for them to manage, understand and negotiate by themselves.
Many borrowers say that they trust a broker to negotiate a better mortgage deal that will save them more. Borrowers tend to seek out brokers as they feel they know and understand the property market, have an ability to identify how lending changes could affect a home loan, and can find competitive loans.
Borrowers have greater respect for mortgage brokers and view them as home loan experts. According to industry leaders, brokers tend to have their finger on the pulse of the lending market, especially when it comes to finding the right home loan to meet the needs of the borrower. Many borrowers are very aware of this, and with the majority of them seeking to make sound financial decisions that save them more, they are turning to brokers for help.
Technological Advancements and the Broker
There have been a number of online platforms recently introduced to the market where a borrower can broker their loan. These platforms are said to be putting pressure on the market share of brokers. However, it is anticipated that many borrowers will elect to use trusted and experienced advice over the newly introduced do-it-yourself technology.
Industry leaders also say that brokers should not view the introduction of any new technology as a threat, but rather as an opportunity and a challenge. New technology often represents increased value that a forward-thinking broker can utilise to better their own service.
Demand typically drives change, especially when related to technology. Therefore, brokers need to embrace change and use it to enhance their customer experience. If brokers choose not to embrace change, especially in regard to technology, then they may discover that they are left behind.
Broker Market Share Expected to Continue to Grow
Industry leaders state that they expect the market share of brokers to increase further over the next 18-months. This estimate is based on the complexity of the lending market continuing to grow, with the market becoming even more competitive. Industry leaders feel that these aspects will help to strengthen a brokers share of the market if they look to grow with the industry.
How Brokers Can Use Industry Advancements to Increase Their Market Share
Brokers who are seeking to keep up with changes in technology should look to upskill. It is also recommended that they keep their knowledge up-to-date so that they can offer their clients additional value. eChoice, a leading Australian aggregator, gives brokers the opportunity to do this by supplying you with business development tools that increase your capabilities and enable you to maximise your profits. These tools include free marketing services, access to a state-of-the-art online IT platform, compliance and risk education, lead generation programs, and unlimited broker support. eChoice offers existing brokers, new market entrants, and financial planners with a unique, low-cost model, and they aim to empower female brokers. To find out more about how eChoice can assist your business to move forth and make the most of these opportunities, visit eChoice today.
Do you want to know more about becoming a broker or enhancing your existing career? If you said YES, then its time to contact eChoice. We can help you claim your share of the market.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!