More Victorians are opting to consult mortgage brokers to secure their home loan applications, according to figures from the Mortgage and Finance Association of Australia.
The data said 67% of the growth in the national mortgage market from January to September was handled by mortgage brokers, amounting to $37.7bn of the $56.2bn increase, reported The Herald Sun.
Chief executive Siobhan Hayden said one in every two home loans is now written by mortgage brokers, as they hold 51.5% of the market today. She said this number is set to rise even more.
“The broker channel is going from strength to strength over time and represents the consistent efforts that brokers are making to offer the best possible service to their customers,” Hayden said.
Mortgage brokers are not affiliated with any one bank, which meant “they were in an ideal position to discuss the pros and cons of all the home loan products offered by different lenders,” said Mortgage Choice chief executive Michael Russell.
However, for Miles Larbey of the Australian Securities and Investments Commission’s MoneySmart website, borrowers must still research before sealing loan and ask lots of relevant questions to their brokers in order to narrow down better options.
“Mortgage brokers should have a good knowledge of the fees and associated costs and know the market well. (But) it’s important to shop around yourself to see what deals are out there,” he said.
Larbey added that not all brokers are able access to all credit providers’ loans. This could lead to some people who might think they were dealing with the lender directly, when in fact they were dealing with a broker.
Another factor to watch out for is the potential for bias because brokers are paid different commission rates by different lenders, he said.
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