Preference for brokers increasing
The mortgage broker proposition remains strong in the Australian market, with the preference for brokers growing from 29.3 per cent in September 2011 to 34.5 per cent for the same period last year, according the Commonwealth Bank and Mortgage and Finance Association (MFAA) Home Finance Index survey.
Although banks were still the most preferred source for lending for 46.6 per cent of the 1361 respondents, the MFAA stated that the gap between brokers and banks is shrinking for home buyers and investors who are likely to be in the market for a home loan in the next seven years.
Brokers currently provide about 46 per cent of mortgages in Australia. The survey said 39.7 per cent of those surveyed believed brokers provided better deals than banks (39.1 per cent), credit unions (16.5 per cent) and non-bank lenders (3.6 per cent).
The survey also found that 48.8 per cent of first home buyers believe now is a good time to buy a new home, while there has been a 50 per cent jump in people likely to be in the market for a home loan over the next 12 months. MFAA chief executive Phil Naylor said this presented great opportunities for the broker market.
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