The effect most relevant to the prospective home buyer is that it now makes more sense to go to a broker, who acts as a mortgage clearing house, than it does to go to a bank.
Perth, Western Australia (PRWEB) September 11, 2012
According to many in the banking industry, more consumers are going through mortgage brokers instead of directly to big banks to obtain home loans. In banking circles, it is generally accepted as fact that nearly half of those who obtain home loans in Australia are obtaining them through mortgage brokers.
Mortgage brokers provide an efficient and cost-effective solution for banks, and have now become the banks’ preferred method of dispensing home loans. The mortgage brokers do the qualifying and the legwork for the banks, and save them the expense of hiring employees and creating office space to do what mortgage brokers are currently doing.
Banks see the trend as part of an overall broadening of parameters in the banking industry, and fallout from the government’s banking reform package of December 2010. The reforms have resulted in increased competition within the banking industry, and have allowed other entities to perform many tasks that were the sole property of banks before the reform.
According to Steve Mickenbecker, Head of Research at financial data provider CANSTAR, consumers are changing the way they interact with banks in search of a more personal approach: “What we’re seeing now is an historical shift in where we bank and essentially which model, shareholder, or customer-owned, we choose to support with our money.”
So, what does this mean to consumers? According to Justin Smith, Principal of The Mortgage Gallery Rockingham, “The banking reform package changed the very definition of the word ‘bank’ for many, and provided consumers with a lot more options than they previously had. It created a lot more entities which could call themselves banks, and forced a lot of companies to reassign a lot of duties.”
James Eaves, mortgage broker at The Mortgage Gallery Rockingham, added: “The effect most relevant to the prospective home buyer is that it now makes more sense to go to a broker, who acts as a mortgage clearing house, than it does to go to a bank. There are many more options available to the consumer now. Consequently, it is more efficient for a customer to use a mortgage broker to prequalify and preselect the home loan that is right for the buyer.”
Eaves would conclude: “That’s why so many people are now turning to mortgage brokers like us. We know what we’re doing, and we can help them navigate what can look like an endless sea of options and products. We take the time to find out what a customer wants and figure out what he or she needs. We can then use our experience and knowledge of the industry to communicate those needs to banks with 100 percent accuracy. We save them time, money, and aggravation.”
James Eaves is a trusted mortgage broker from The Mortgage Gallery Rockingham, a mortgage broking firm that specialises in home loans and refinance, and services the Rockingham, Cockburn, and Kwinana areas. For a consultation or for more information, James Eaves can be reached at 0400 204 408, or at his website: http://www.jameseavesmortgagebroker.com.au/.