There are over 100 big mortgage lenders in Australia, but despite this, 75% of buyers use the same 4 banks. So, if your buyers are narrowing down their options to Commonwealth Bank, NAB, ANZ and Westpac, they’re massively restricting the offers they could get.
So, the next time you’re talking with a buyer who’s having trouble getting pre-approval for a loan, it could be worth asking them if they know just how vast and competitive the mortgage market is. Despite it becoming harder than ever to borrow money, buyers are continuing to limit their options themselves.
Regardless of what you might think, you don’t have to be an expert on credit and challenger banks to be able to point your buyers in the right direction and help them explore the options they have at their disposal. In fact, challenger banks will often offer lower rates as they try to get a stronger foothold in the market.
Another method you can use for helping out budding buyers is putting them in touch with a trusted mortgage broker. An experienced broker will have a firm grasp on the market and will be able to properly assess your buyer’s financial situation and use it to find the best product for them. They’ll also be able to use this experience to recommend which lenders are likely to approve them based on their circumstances.
Research has shown that mortgage brokers arrange over 53% of Australian home loans, making them the first choice for many borrowers. So, here are the 3 key facts you need to take away for the next time you speak with a buyer who’s struggling to get a mortgage:
1) There are roughly 150 mortgage lenders in Australia
2) Interest rates can be as low as 3.39% (at the time of the writing of this article)
3) 53.6% of borrowers now use mortgage brokers
If you offer your buyers some simple, unbiased information, you could help to boost your sales results.