As more Australians emerge from lockdowns, the property market continues to surge ahead. The latest research* from MyState Bank indicates that Australians are viewing mortgage brokers as highly valued partners in securing a home loan during this time.
The research also highlighted greater comfort in a ‘virtual loan’ process as well as seeking a loan outside the ‘Big Four’, as more Australians look towards alternative lenders for competitive financing.
MyState Bank surveyed more than 500 Australians who had used a mortgage broker in the past three years to better understand their experience. Overwhelmingly, the research found that the experience was highly positive.
MyState Bank General Manager of Banking, Huw Bough said, “As people look for ways into the competitive housing market, many are seeking the assistance of a mortgage broker to help them navigate the loan process, and secure the best deal as fast as possible.”
The research also showed:
“The property market has been fuelled by a combination of factors. These include record low interest rates, Australia’s negative gearing system, extra savings from forced lockdowns and support payments from the government. We’re also seeing intense competition from lenders offering better deals and cashbacks,” Mr Bough said.
“Australians are taking more control over their money and want to find a better home loan deal. MyState Bank is focused on offering a highly competitive solution with the aim of fast two-business day conditional loan approval turnarounds.”^
The survey also found the search for ‘a competitive interest rate’ was the top reason Australians seek out the services of a mortgage broker, followed by ‘access to the best loan to suit my needs’, ‘help with navigating the loan approval process’ and then ‘fast loan approval process’.
The pandemic has permanently changed the way Australians interact with mortgage brokers and lenders. This has been accelerated by quicker adoption of technology.
The research revealed eight in 10 people surveyed were very comfortable with an entirely online mortgage process.
“At MyState Bank we’ve long recognised the need to become a pure digital bank to support customers across Australia. Our goal is to use technology to provide easier and quicker access to home loan services,” Mr Bough said.
Using a mortgage broker is now one the most popular ways to secure a mortgage in Australia.
The research revealed that:
“Affordability is the challenge for many Australians, but particularly first home buyers. Brokers are critical to health of the housing market in Australia,” Mr Bough said.
“Brokers provide consumers with information about products, access to competitive interest rates and offer significant support as people secure a loan and then their home. They also increase competition between lenders, making the market work better.”
* Notes on research: Nationally representative survey conducted by PureProfile of 517 Australians during September 2021