Mortgage brokers missing their chance to diversify
Mortgage brokers are failing to capitalise on the high levels of trust and satisfaction that home buyers and property investors report after using their services. Brokers have an opportunity to sell other products to these satisfied customers but they are not doing so.These are among the findings of the latest Commonwealth Bank and Mortgage & Finance Association of Australia Home Finance Index, prepared by CoreData.Presenting the results of the index survey at the MFAA national convention yesterday, CoreData chief executive Andrew Inwood said: "The cross-sell is not as good as it could be."More than 39 per cent of people said brokers were best able to provide the lowest rate for a home loan. Brokers are rated higher than banks and other financial institutions in this respect. "More people are saying that brokers add value than a few years ago," Inwood said. "Young people, especially, see value in the advice a broker can offer them."He said the conclusion of a successful home loan sale was the opportunity to ask clients about their other financial needs. Twenty-five per cent of respondents said they were open to buying insurance, personal loans, car loans and business loans from a mortgage broker."But about one-third of customers reported that they had not had that conversation with their broker," Inwood said.