Brokers more sought after than banks
With the banks making it more difficult to secure a loan, people are turning to brokers. 

The industry supports this with released data for the September quarter reflecting that mortgage brokers settled an unprecedented 59.1% of all residential home loans. Significantly, this is an exceptionally strong outcome and the second ever biggest jump in broker share since records began in 2012.
Mortgage brokers settled an unprecedented 59.1% of all residential home loans in September

MFAA CEO Mike Felton said on the MFAA website that the result reflects not only the trust and confidence customers have in their mortgage broker but the systemic importance of the mortgage broking industry.

“This result has occurred during a period of severe credit tightening with brokers stepping in to provide critical assistance in the redistribution of credit demand for those seeking home lending.

As banks have persisted in making it more difficult to secure a loan, turning many would-be borrowers away, consumers have continued to increasingly utilise the broker channel for experience, expertise and greater market choice to secure access to credit.

In addition to providing customers access to a panel of 34 lenders on average, brokers are ideally positioned to help customers, especially those with more complex lending scenarios, to understand the ever-evolving application process and provide the information necessary to meet changing lender requirements.

Mortgage brokers continue to offer choice to consumers and ensure credit continues to flow which is of systemic importance to the housing market and a strong economy.”

2019 resolution – Review your mortgage rate

Within the last few weeks, banks have started to increase interest rates on their own accord and justify this by detailing capital constraints, cost of funds, and regulatory changes to name a few. As a consumer, your query of ‘Am I getting a fair deal?  is rightly justified.

Importantly there is significant data to illustrate that the longer you stay with your funder, the greater the chance that your interest rate will be set higher than what that that same funder will charge for new business. In essence, this means your loyalty is penalised.

At Prosperity, we let you know what your options are via an obligation free mortgage review. This ensures you’re getting a deal that works for your individual circumstances and that it’s market leading and competitively priced.

Take control of your finances by ensuring your exposure is competitively priced. The Prosperity lending team has extensive networks with all the major financiers to access competitive rates. If you’d like to know more, contact Alex Warian who leads our Lending team on +61 2 8262 8756 or your principal adviser.

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