A recent Mortgage & Finance Association of Australia (MFAA) member survey has shown that mortgage and finance brokers are seeing a material increase in new clients using a broker for the first time to understand options around their home loan.
The survey of over 465 MFAA members indicates that since the beginning of 2023, 95% of brokers have had clients coming to a broker for the first when seeking to refinance their current home loan.
“The number of new clients seeking the services of our members for the first time highlights the value of using a broker given the complexity of the lending market,” said MFAA CEO Anja Pannek.
The survey also showed that the number one reason brokers are finding their clients are unable to refinance is inability to meet servicing requirements. Eight in 10 brokers said up to half their refinancing clients were facing this issue.
Another theme emerging from the survey results was mortgage prisoners, with most brokers saying they have clients who are in a position where they don’t qualify for refinancing. In contrast, the survey also highlighted that known instances of clients seeking hardship assistance remains extremely low indicating that broker clients are receiving strong guidance on their credit options.
However, borrowers remain concerned with over 90% brokers reporting that they believe their clients are more concerned about meeting mortgage repayments compared to the beginning of 2023.
“We expect this concern about mortgage repayments to increase over the coming months with more than 1.2 million borrowers coming off very low fixed rate terms throughout 2023 and into 2024,” said Ms Pannek.
The MFAA said that having data and feedback from its members is vital when advocating on their behalf , so that they can get the best outcome possible for their clients.
“The insights from this survey and ‘at the coalface’ insights of our members, have enabled us to work with Government, regulators and Treasury on responding to the current economic environment,” said Ms Pannek.
“The data also highlights the critical role of mortgage brokers for consumers. At the MFAA we are committed to promoting the broker value proposition to Australian homebuyers.”
The MFAA recently ran a four-week consumer campaign in May and June across Facebook, Instagram and key news outlets promoting the benefits of using a broker, particularly for those borrowers coming off fixed-rates.
The successful campaign exceeded the benchmark for similar campaigns in related industries reaching over 900,000 Australians and achieved 2.7 million impressions – the number of times the campaign was seen in consumers’ social media feeds.
“It’s clear from the campaign results that our message, which is fundamentally to talk to your mortgage broker, has resonated with consumers.
The campaign also resulted in over 8,000 additional visits to the ‘Find a broker’ tool on the MFAA’s consumer website, Mortgage and Finance Help, throughout the campaign period, double the usual traffic to the site. The tool allows people to search for an MFAA accredited mortgage broker in their area.
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