Australians are changing the way they shop for mortgages – instead of directly approaching major banks, nearly half the home loans in the country are now sourced through mortgage brokers.
“The banks and lenders are moving to recognise mortgage brokers as a preferred distribution network for mortgages because of the number of customers using them and the fact there are no fixed costs associated with brokers such as a branch facility,” said Paul Smith, spokesperson for Loan Market.
The federal government also provided an alternative way of banking when it reformed the industry two years ago.
The reform allowed building societies and credit unions to use the term ‘bank’ in their names, enabling mutual banks to become non-profit lenders that turn profits into lower fees and competitive interest rates.
Customer-owned mutual banks serve as an alternative to traditional banking and financing, with Australia having the third largest mutual banking sector after the US and Canada,
Customer-owned mutual banks served as an alternative to traditional financing and banking, given that Australia has the third biggest mutual banking sector after the US and Canada, noted mortgage researcher CANSTAR.
“What we’re seeing now is an historical shift in where we bank and essentially which model, shareholder or customer-owned, we choose to support with our money,” said Steve Mickenbecker, Head of Research at CANSTAR.
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