Brokers identify top concerns
Timing is essential for non-banks when it comes to dealing with mortgage brokers – and Mortgage Professional Australia’s (MPA) latest data shows it is becoming even more of a priority.
In MPA’s Brokers on Non-Banks 2022 survey, the MPA team asked mortgage brokers to rank non-bank lenders across 10 categories:
- BDM support;
- Brand recognition;
- Commission structure;
- Communications, training, and development;
- Credit policy;
- Interest rates;
- Online platform and services;
- Product diversification opportunities;
- Product range; and
- Turnaround times.
Brokers were able to rank the non-banks with a score out of five in each category, and only those institutions that achieved a response rate of at least 10% of brokers for each non-bank were included in the final list.
The report found that mortgage brokers’ top concern this year was turnaround time – the same as last year’s result, but by a smaller margin. On the bright side, the entire data set revealed that nearly three-quarters of brokers said turnaround times had improved or remained about the same, with only 27% claiming that times had worsened, a drop from 33% in 2021.
“I have just noticed in the last 12 months that all lenders’ turnaround times seem to have improved,” a broker told MPA.
Brokers’ second top concern was commission structure, despite ranking last in the 2021 survey. This year’s respondents said non-banks must address this issue better.
“One way to show their commitment to the broker channel would be to remove the ludicrous net of offset commission payments and do something to sort out clawback issues,” a respondent said.
The survey also found that competition among non-banks is rising this year as borrowers continue to see non-banks as a good option. In terms of brokers’ ratings of the benefits of using a non-bank, 2022 marks a watershed year not for any single financial organisation but the whole industry.
Find out more about mortgage brokers’ top concerns and the latest challenges facing non-bank mortgage lenders this year by reading the MPA Brokers on Non-Banks 2022 report.
