Abstract
Overview
Introduction
The broker channel has become more important in the Australian mortgage
market, and it has become crucial for lenders to manage their relationships
with brokers. Drawing on results from Datamonitor' s Australian Mortgage Broker
Survey, this report provides insight into the broker-lender relationship by
analyzing various areas such as commissions and services offered to the broker
by the lender.
Scope
- Uses Datamonitor' s Australian Mortgage Broker Survey to understand how
brokers feel about different aspects of their interaction with lenders.
- Discusses future issues that will affect the relationship between brokers
and lenders.
- Examines ways in which lenders can differentiate themselves by
implementing a long-term strategy for managing the broker channel.
Report Highlights
Although there clearly are improvements to be made, in general, brokers are
happy with the relationship they have with lenders' business development
developers. Datamonitor' s broker survey shows that 25% of respondents are very
satisfied with their relationship with the lender' s representative, while only
2% are very dissatisfied.
The advantage of commission-based remuneration is that it provides an
excellent incentive for sales. The disadvantage with such a system is that
broker incomes become volatile, and that the incentive can lead to
shortsighted behavior. Trail commissions have the potential to align lender
and broker interests.
Among the various aspects of service, fast loan approval and turnaround
emerges as primary issues for mortgage brokers in the Datamonitor Australian
Mortgage Broker Survey 2007. Around a fifth of surveyed brokers name
turnaround times in response to open-ended questions about areas in which
lenders should improve.
Reasons to Purchase
- Gain invaluable insights into how lenders can achieve success using the
mortgage broker channel.
- This report includes survey results that promotes a strategic
understanding of the mortgage broker channel.
- Learn about the most important product features for brokers' clients and
adapt your product offering accordingly.
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