Borrow
One in two Aussies does not believe banks act in their best interests when refinancing
Borrow
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed.
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed.
Survey results conducted by CoreLogic on behalf of Mortgage Choice have shown that 38 per cent of Aussies are looking to take advantage of the record-low interest rate.
However, 53 per cent of respondents do not entirely trust the banks, admitting that they are unlikely to advise them of a better mortgage deal outside of their bank.
A further 49 per cent of home owners said they do not believe the banks always have their best interests at heart.
Despite a mistrust in the banking industry, the research showed that 94 per cent of home owners trust a mortgage broker’s loan recommendations.
Susan Mitchell, CEO of Mortgage Choice, said consumers are often confused by the process of refinancing their mortgage.
“Faced with what can be an overwhelming choice of home loans, home owners want to be confident they are making the move to a loan that will improve their financial wellbeing through a lower rate, improved loan features, or both,” Ms Mitchell said.
The CEO also highlighted how banks are limited with their information and are likely to only know the rates provided by their own financial institution.
“While banks can provide information on their own product suite, they do not have an in-depth understanding of competitors’ products,” she said.
“Mortgage brokers not only provide a broad selection of loans across a variety of lenders, they also take the time to explain why a particular loan is being recommended.”
“This is very reassuring for consumers and demonstrates that mortgage brokers work in the home owners’ best interests at all times. This important combination underpins the exceptional level of trust that home owners place in their mortgage broker,” Ms Mitchell concluded.
RELATED ARTICLES
About the author
About the author
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
Loans
Debunking credit myths leads to big wins with transparent hardship design
New research from Arca’s CreditSmart initiative surfaces a stubborn problem: Australians under financial strain are avoiding hardship support because they fear lasting damage to their creditRead more
Loans
No-deposit home loans in Australia: The growth gambit that tests risk discipline
A new no-deposit mortgage has landed in Australia, promising to crack the hardest nut in housing—fronting a deposit—while raising old questions about risk and capital. For lenders, the product doubles ...Read more
Loans
Rate relief ignites a mortgage scramble — and a technology arms race
Australia’s rate easing has flipped mortgage demand from ‘defend and retain’ to ‘originate and grow’. Refinance waves and a rekindled purchase market are colliding with digitisation, broker dominance ...Read more
Loans
Trust is the moat: How brokers can win in an AI-accelerated, commoditised mortgage market
In an evolving mortgage landscape where algorithms are levelling the playing field, Australian mortgage brokers are finding that trust, rather than price or speed, is becoming their most valuable ...Read more
Loans
CreditSmart revolutionises hardship support and lenders risk missing out
Australians under cost‑of‑living pressure are sidestepping hardship help because they fear a permanent stain on their credit file. Arca’s CreditSmart initiative has thrust this misconception into the ...Read more
Loans
Australia’s 40‑year mortgage moment: affordability optics, lifetime cost, and the new risk calculus
Forty‑year home loans are shifting from niche to feature in Australia, led by challenger banks and mutuals courting first‑home buyers. The headline promise—lower monthly repayments—masks a material ...Read more
Loans
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
Loans
Debunking credit myths leads to big wins with transparent hardship design
New research from Arca’s CreditSmart initiative surfaces a stubborn problem: Australians under financial strain are avoiding hardship support because they fear lasting damage to their creditRead more
Loans
No-deposit home loans in Australia: The growth gambit that tests risk discipline
A new no-deposit mortgage has landed in Australia, promising to crack the hardest nut in housing—fronting a deposit—while raising old questions about risk and capital. For lenders, the product doubles ...Read more
Loans
Rate relief ignites a mortgage scramble — and a technology arms race
Australia’s rate easing has flipped mortgage demand from ‘defend and retain’ to ‘originate and grow’. Refinance waves and a rekindled purchase market are colliding with digitisation, broker dominance ...Read more
Loans
Trust is the moat: How brokers can win in an AI-accelerated, commoditised mortgage market
In an evolving mortgage landscape where algorithms are levelling the playing field, Australian mortgage brokers are finding that trust, rather than price or speed, is becoming their most valuable ...Read more
Loans
CreditSmart revolutionises hardship support and lenders risk missing out
Australians under cost‑of‑living pressure are sidestepping hardship help because they fear a permanent stain on their credit file. Arca’s CreditSmart initiative has thrust this misconception into the ...Read more
Loans
Australia’s 40‑year mortgage moment: affordability optics, lifetime cost, and the new risk calculus
Forty‑year home loans are shifting from niche to feature in Australia, led by challenger banks and mutuals courting first‑home buyers. The headline promise—lower monthly repayments—masks a material ...Read more
Loans
The mortgage-regret economy: Why borrower confusion is reshaping Australia’s home-loan playbook
Mortgage regret has become a measurable market force, driving record refinancing, rising arrears off a low base, and a scramble by lenders and brokers to redesign the borrower journey. With the ...Read more
