The Broker Effect – Why Borrowers Choose Brokers

So why do over 70% of home owners choose to work with a a mortgage broker during the home buying process?

 

Mortgage brokers improve financial literacy

Brokers make the application process more than a one-way transaction. They help clients make sense of a large amount of information so that they can develop a deeper understanding of their options and make better informed decisions. This improves financial literacy of borrowers, helping them feel more active and in control throughout the borrowing process.

 

Brokers help borrowers realise their home ownership dreams

Buying a home is highly emotional, yet the loan application process can sometimes feel cold, robotic, and transactional. Brokers put borrowers at ease by connecting with them on a personal level and understanding the emotional motivation behind buying a home.

 

Borrowers lean on their broker to be a trusted advisor

Borrowers want brokers to provide them with more than just competitive rates. Brokers are counsellors and trusted advisors. This becomes even more important in complex lending environments such as sustained interest rate increases, fixed rate loan periods concluding and loan mobility becoming challenging with changes to serviceability tests - all putting borrowers under pressure.

 

Human interaction provides reassurance.

Having a human being involved in the loan process provides reassurance for consumers and confidence they will get the answers they want in a timely manner. Brokers are partners, providing support to their clients every step of the journey.

 

Humanity and technology coexist.

Consumers expect the lending process to be 100% online in the future, but they still crave personal connection as part of the home loan process. Brokers can't be replaced by technology, but tech is useful as an enabler.

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Written by Chloe Boswell
20 September, 2023
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