In the past, customers were able to walk into their local bank and the bank manager would know their name and their story. However as the role of the bank manager is being made redundant, people are looking for a more personalised experience when it comes to the lending process.
Enter the mortgage broker. Mortgage brokers provide excellent value as they are a reliable and well informed way for consumers to obtain a great deal on their home loan from a large selection of banks and other lenders. But the most important thing a broker provides is a trusted relationship with the consumer. So it comes as no surprise that, according to figures from the ABS, mortgage broker’s process 52% of all mortgage and home loans – and this figure is rapidly growing.
As banks work intensively to cut down on human resource costs, brokers have as such taken the role of the bank manager down the supply chain. The vast majority of consumers will pick a mortgage broker based on the relationship they share and not necessarily the product they can obtain.
Mortgages are certainly a large commitment for anyone, and therefore the strongest appeal of mortgage brokers is that they are able to navigate their clients through a highly stressful environment. As mortgage brokers continue to personalise the lending process, banks are increasingly depersonalising the process as they push to digitise their services. Many consumers hunt and research mortgages online, but only 1% actually transacts online. The internet is widely used for comparison and information exchanges, but the vast majority of consumers prefer to transact with a real person – a broker.