Broker satisfaction on the rise, amid bank closures

The 2022 Consumer Access to Mortgages Report has been released in partnership with Mortgage Business sister brand The Adviser by Momentum Intelligence, which is the research arm of Momentum Media (the parent group of Mortgage Business).

The survey of over 450 consumers conducted between January and April 2022 found that 65 per cent used a mortgage broker the last time they took out a mortgage, while 35 per cent approached a lender directly.

The report was first launched in 2019 in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry — to compare the experiences of Australian borrowers using mortgage brokers and the proprietary channel (direct).

The 2022 report found 85 per cent of broker clients reported feeling satisfied with their level of communication, compared to 72 per cent of proprietary channel customers.

The report noted that while respondents have always desired ongoing communication from both channels throughout the home loan process, lenders have been closing their branches and reducing their networks (particularly in regional and rural Australia).

“Herein lies an opportunity for brokers to increase their lines of communication with clients using their preferred method (including in-person meetings, video conferences, or phone calls),” the report said.

Trust levels in brokers also rose this year, with 87 per cent of consumers reporting that they trust their brokers, up from 84 per cent in 2021 (but down from 89 per cent in 2020).

The report measured borrowers’ overall levels of satisfaction with and trust in using a mortgage broker or direct through lender, and found 86 per cent reported feeling satisfied with their experience using a broker, compared with 76 per cent who reported feeling satisfied when using the proprietary channel.

Similarly, a higher proportion of broker clients (47 per cent) reported feeling “extremely satisfied” with their overall experience compared to just 28 per cent of proprietary channel consumers.

Conversely, only 39 per cent said they were “satisfied” with their experience using a mortgage broker, compared to 48 per cent of proprietary channel consumers.

Reflecting the high satisfaction rates and trust levels in the third-party channel, 90 per cent of clients who previously engaged with a mortgage broker said they would do so again in the future (up from 83 per cent in 2021), while only 10 per cent would switch to the proprietary channel, according to the report.

On the other hand, only 67 per cent of consumers who approached a lender directly for their mortgage application said they would do so again (up from 61 per cent in 2021), while a third of all respondents said they would switch to the broker channel.

[Related: Revealed: What consumers think of broker remuneration]