> HomeSectionsMarket talk Submit Lowest interest rate not biggest reason consumers use brokers | Better Choice

HomeSectionsMarket talk Submit Lowest interest rate not biggest reason consumers use brokers

May 18, 2017

MPA Consumers on Brokers surveys suggest ASIC’s criticism that brokers don’t provide better interest rates may be misplaced

‘Help with the application’ is the biggest reason consumers use brokers, MPA’s 2017 Consumers on Brokers report has revealed. 

The survey showed that lowest interest rates were only the third biggest reason for consumers to use a broker (picked by 19% of consumers), after ‘help with the application’ (29%) and ‘access to specialist lenders’ (23%).

The findings come a month after ASIC and consumer groups criticised brokers for not providing better interest rates.  Finding 6 of ASIC’s report found there was no consistent difference in the interest rates provided to broker and direct customer, which according to consumer group CHOICE proved “what consumers expect they’re getting from brokers doesn’t match what’s getting delivered.”

However, MPA’s survey indicates consumer don’t necessarily expect to get the best interest rate. 

In fact getting the lowest interest rate was a major reason for broker customers to go direct to a bank. 32% of broker customers surveyed said they’d go to a bank for their next loan if they could get a lower interest rate, with just 9% citing more support in a branch.  

MPA surveyed a range of first home buyers, investors, refinancers and upgraders nationwide and found only for upgraders was a lower interest rate the main reason to use a broker. FHBs prioritise help with the application, investors need access to specialist lenders and refinancers want a broker to help them with complicated deals. 

As one investor told MPA “the broker I use is an investor themselves and looks not just to this loan but what’s next and how this will affect that one. Not all brokers are investors and don’t understand potential pitfalls [such as] cross collateralization etc.” 

MPA’s Consumer on Brokers survey also looked at consumer attitudes on finding a broker, doing mortgage applications online and how they would prefer to use a broker. Over 600 consumers took part in the survey. 

Tags: , , , , , , , , , ,


Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

Contact Us

1300 805 221

Better Choice