A new KPMG report found that Broker clients are overwhelmingly more likely to get a better deal and renegotiate their mortgage rates.
The general manager for broker partnerships at NAB, Mr Anthony Waldron, noted when speaking at an event in Sydney that Greg Medcraft, ASIC’s chairman, had previously told the ABC that he believes “brokers deliver great consumer outcomes”
He also noted that consumers who had used a broker (or planned to do so) thought that the third party “offers a better deal than getting a loan directly with a lender, like a bank” (58 per cent).
Borrowers are largely drawn to Brokers to secure ‘the best deal’
There are many reasons why more and more borrowers are opting to their get their loans through brokers:
– A Better Deal – brokers can offer a better deal (price and product features) because they work with multiple lenders and therefore can find an offering which better fits with the end customers’ needs
– Convenience – the process can become confusing & cumbersome to the borrower and the broker helps manage that
– Solutions Based – Brokers can match a borrowers situation to a bank or lender ‘s policy increasing the likelyhood of a positive outcome – this is virtually impossible to do for a borrower walking off the street into a bank branch
– Ongoing Care – Broker clients changed their rates or mortgage products more often than the banks due to the fact that Brokers are better at renegotiating customer rates – getting the best rate for the customer improves their business whereas a bank will try and preserve a higher rate if possible to boost profits & offer a better return to their shareholders.