Best Interest Duty: new survey reveals what brokers really think
A survey of mortgage brokers from Australia’s leading mortgage broker platform HashChing has revealed the state of broker sentiment on the recent Best Interest Duty (BID) obligation, and how they think it will affect their workload.
CEO of HashChing, Arun Maharaj, said that given BID doesn’t apply to lenders, it was interesting to see that brokers were almost evenly split on how they think the obligation will affect demand for their services.
“45% of mortgage brokers in our latest survey are expecting to be even busier this year with the introduction of BID. Given the onus that is now being put on brokers, I was expecting this number to be a little higher. The majority of brokers (71%) didn’t think BID was a necessary obligation to introduce.”
When it came to the role that digital technology will play in brokers interactions with customers, the overwhelming majority are expecting change.
“The events of 2020 forced brokers to rapidly change how they interact with customers, so it absolutely makes sense that 97% of respondents believe digital technology will play an even greater role in their interactions this year. At HashChing we believe the winners in today’s environment will be those brokers that leverage technology to work both the customer side of the equation, and internal operations. That’s why we offer brokers a one stop hub for all their technology requirements and more.”
Commenting on the property market outlook for 2021, Mr Maharaj said the ABS recently revealed that a record 8,192 loans for home building were approved nationally during December – an increase of 15.3% over the previous month’s record result.
“This shows that the property market is still showing no signs of slowing down, which is good news for brokers. Interestingly, 57% of brokers believe their key driver of activity will come from refinancing, while 38% believe it will come from first home buyers. The remaining 5% predict investors will be their key driver. Despite a positive outlook, brokers are united in their position on government funding – 90% of respondents said they would like to see more government support.”
After years of consecutive cuts, the majority of brokers aren’t predicting a change to interest rates from the RBA this year.
Do you believe the RBA will change interest rates this year?
Yes – Lower
Yes – Higher
No – Stay the same
The Best Interests Duty for mortgage brokers officially came into effect on 1 January 2021. In your opinion, was this a necessary obligation to introduce?
Yes – It was necessary to better help consumers
No – I don’t think it was needed as a statutory obligation
Given the Best Interests Duty doesn’t apply to banks, do you think the obligation will lead to a rise in demand for broker services this year?
Yes – I’m expecting mortgage brokers will be even busier this year
No – It won’t make a difference
Which of the following do you expect to be the key driver of activity for mortgage brokers this year?
First Home Buyers
Do you think there should be an intervention to ensure both new and existing customers have access to the same home loan deals?
Yes – The discrepancy needs to change
No – It’s fine how it is
Do you think the government should be doing more to support the mortgage broker industry in 2021?
Yes – I’d like to see more support for mortgage brokers from the government
No – The current support from the government is enough
Are you expecting digital technology to play a greater role in your interactions with customers this year?