Broker Perspectives

The following findings are from Genworth’s 2011 Mortgage Industry Perspectives report which comprised a survey of 200 people working for lending institutions and 300 brokers.

Strong outlook on the property market

Of brokers surveyed, 44% said that lending increased over 2011 compared to 52% of lenders, though 32% of brokers had seen a decrease compared to 34% of lenders. Despite the setbacks, brokers are still optimistic, 57% expect some degree of increase in lending volumes in 2012 compared to 46% of lenders.  

Brokers see an increase in business for refinancers and investors over the next 18 months, to 31% and 25% of lending respectively. On the other hand, brokers expect lending to first homebuyers and upgraders to decrease, to 20% and 22% respectively.    

First homebuyers

First homebuyers make up a larger proportion of brokers' business than they do lenders'. Surveyed brokers felt that borrowers were most likely to come to them to find a better deal or for guidance, and this is more likely to be more highly valued by first homebuyers who are less confident about negotiating the property on their own.

The main reason brokers gave for seeing a decrease in lending was the lack of borrowers, particularly first homebuyers. On the other hand, the number of refinancers is increasing the lending volumes in 2012. Like lenders, brokers expect underemployment to have the strongest negative impact on the lending volumes in 2012, while confidence in the property market is expected to have the largest positive impact.

Service and innovation

After a perceived turning away from the broker channel, lenders appear to have started to improve brokers' opinions towards them and improve their service. In 2011, 48% of surveyed brokers agree that lenders provide them with good service, up from 38% in 2010, and 39% agree that lenders are committed to the broker channel, up from 32% in 2010.  

According to brokers, the key area of improvement with regards to lender service is loan processing, with 86% of surveyed brokers nominating this as a key area in need of service improvement. Training and lead generation are also in need of improvement with 43% and 42% of brokers respectively seeing need for improved service in these areas.

To find out more about broker and lender sentiment towards the future of the mortgage market, please visit genworth.com.au/homegrown