This month, we surveyed 259 Australian brokers to understand more about mortgage broker marketing in 2016. It made for some interesting analysis….
Here is an executive summary of the key findings:
- Getting qualified leads is by far the biggest challenge for mortgage brokers today. Some brokers have trouble just getting any leads full stop. Other brokers have plenty of leads, but many of these leads either don’t have a deposit, can’t afford the repayments or simply don’t fit today’s stringent credit policy.
- The vast majority spoken to on the phone mentioned their main method of mortgage broker marketing is referrals, generally from people they know and related industry professionals. The exception is the large call-centre operations, who mainly source their leads from large-scale marketing campaigns. Smaller operators felt they couldn’t compete with the marketing budget of big banks and large franchise groups.
- Home buyers undervalue the service of mortgage brokers. Home buyers do not pay the mortgage brokers directly, so the service is drastically undervalued. Many brokers will put in considerable time and effort for clients that never have any intention of proceeding with a loan.
- Time management is a perennial challenge. From processing applications to following up with potential clients and meeting with people face to face…..having enough time in the day is a huge challenge for mortgage brokers.
- The majority of brokers prefer to work with “standard” deals. Many brokers shy away from specialist deals that involve low income, credit defaults, high LVRs and low deposits. There is a very big appetite for borrowers in the 30-49 year demographic. Less than 38% of brokers want to work with people in their 20s, 50s or 60s.
- Half of the brokers surveyed said they had a close rate of over 56% which is high compared to other industries.
- More brokers are moving towards offering cross-sell opportunities, like financial planning and business lending. The majority still only offer mortgage broking.
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Coorey Report is an online business and finance magazine that attracts a white-collar readership. Coorey Report has a monthly reach of over 350,000.
Note: Coorey Report receives thousands of consumer mortgage enquiries each month. These are referred to trusted mortgage brokers. Get in touch if you would like to receive referred mortgage enquiries. Contact Norah Lynn, Head of Partnerships, firstname.lastname@example.org, 0452 218 369.
Here are some of the more “interesting” mortgage broker marketing responses:
“Joining a franchise in the broker world is the worst decision someone could make if that person is under the impression that the franchise will help with their marketing and lead generation. It’s all smoke and mirrors and they should just walk away”
“Because a broker doesn’t cost anything to hire, potential clients often think it is ‘too good to be true’, or there must be a catch. They don’t realise it is a genuine opportunity to save money”
“People value the service of a plumber because they charge them $200 or $300 for one visit. Because our service is no cost to clients, mortgage brokers are ready to waste time and resources for free”
“The initial appointment is very important. If I’m confident to deal with their case I’m committed to do my best to settle the loan”
“Closing leads isn’t the biggest issue. The bigger issue is consistently generating enough quality leads to keep a consistent level of settlements.”
“Not a qualified lead… not enough saving, not enough income…don’t want to get into debt..“
“Biggest problem is finding enough people to engage with”
“Rate chasers that fail to return emails and calls”
“I don’t really have any problems closing a deal – I fully qualify the client before proceeding to an appointment – this saves their time – and mine!”
More interesting responses….
Describe your ideal prospect?
What age group do you prefer to work with?
What borrower types do you service?