The Mortgage & Finance Association of Australia recently commissioned a survey to discover the experience of customers that used a mortgage broker or went directly to a lender.The report concluded that whilst customers tended to generally be slightly more satisfied when they used a mortgage broker, there is a lot of room for improvement. For instance only 40% of customers felt that a broker acted in their best interest at all times. That means that 60% of customers feel that a broker may not always acting in their best interest. The government regulatory authority ASIC’s website Moneysmart contains tips about the limitations of brokers and why they may not always be offering you the best loan available to you due to their circumstances where they may only be paid commissions for certain products.
Customers that went direct to lenders felt that they ended up with a product that was more complex and more extras than their needs required. That is why Joust has simplified the process for good customers that simply want to find the best home loan interest rate available.
We have created a dynamic and totally transparent marketplace where there is unrivalled competitive tension between lenders battling to win your business.
Customers are also less positive about using an online-only service for the end to end home loan process. This means that customers still value having a personal relationship with a lender representative, which is a relevant consideration for the 30% of customers who may be considering using a broker but were previously unclear on how brokers are paid.
Understandably 37% of broker customers would not want to pay anything to use a broker if they were asked to pay and would rather go direct to a lender. Lenders do pay brokers so customers need to have an understanding that any lender discounts available if they went direct to that lender could be absorbed by broker upfront payments and trail commissions.
Joust is a revolutionary online live and transparent marketplace that connects good customers with lenders readily willing to bid with their best rates. Joust does not receive any trailing commission but does receive an upfront payment from lenders of 0.20% based on the settlement amount. Traditionally brokers charge lenders upfront payments of around .65% on the settlement amount and trailing commissions of .20% of the loan balance which can be paid for the life of the loan.