Mortgage brokers set themselves apart from other professionals by offering their clients choice, advice and service. CMHC’s 2018 Mortgage Consumer Survey confirms the unique value that mortgage brokers have to offer. We looked at broker clients who, between March 2017 and March 2018:
- took out a mortgage to buy a home
- renewed a mortgage
- refinanced a mortgage
Our goal was to find out how they felt about their experience.
Here’s a rundown of the top things brokers need to know about mortgage consumers, powered by the 2018 Mortgage Consumer Survey.
Although broker share with first-time and repeat buyers decreased from last year, it remained relatively consistent with refinancers and renewers. About 4 in 10 first-time and repeat buyers contacted 1 or more mortgage brokers to learn about mortgage options. The majority of homebuyers dealing with a broker were pleased with their experience. Seventy-three per cent indicated they were satisfied with their mortgage broker.
Eighty-six per cent of broker clients indicated they were out to get the best interest rate or deal. Keep in mind that over a third of broker clients contacted, on average, 2 mortgage brokers. Ensure you make a good impression when meeting new clients and differentiate yourself.
Also, for homebuyers who got a recommendation to use a broker, a third of these recommendations came from real estate agents. You’ll want to maintain strong relationships with realtor contacts as a referral source.
In addition to a good rate, many mortgage broker clients rely on their broker for advice and information. Forty-one per cent of broker clients had concerns about buying a home at some point during the homebuying process. Interest rates and fees were the top 2 subjects they would’ve liked more advice and information on.
Interestingly, nearly a third of broker clients indicated their broker didn’t discuss unexpected homebuying costs with them. And over half (53%) of broker clients received no post-transaction follow-up. There’s a great opportunity for mortgage brokers to take more time to discuss the costs of homeownership.
Also, taking the time to contact clients post-transaction can increase the likelihood of repeat and referral business. Over two thirds of broker clients agreed they would use their broker again and recommend them to family or friends. This number could be increased with proper follow-up.
When it comes to technology, nearly a quarter (24%) of mortgage consumers used a broker website to gather mortgage-related information. This demonstrates the importance of having an up-to-date, easy-to-navigate and professional-looking website. In addition, 65% of all broker clients indicated using social media to gather mortgage-related information, compared to only 19% of lender clients. There’s clear value in brokers’ maintaining a consistent presence on social media channels to engage with their clients and prospects.