MORTGAGE BROKERS – AUSTRALIA

Brokers lift share of housing pie as bank branches lose business

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Original article by Richard Gluyas
The Australian – Page: 21 : 4-Sep-19

Data from UBS shows that Australia’s major banks account for 79 per cent of existing mortgage loans. However, Jon Mott of UBS says their share of new home loans is likely to keep falling as the trend toward alternatives such as mortgage brokers gathers pace. UBS also notes that the proportion of home loans that are sold via bank branches has fallen from 48 per cent in fiscal 2013 to just 37 per cent. Mott notes that the major banks’ aggressive push to close bank branches in recent years has contributed to the growing use of mortgage brokers.

CORPORATES
UBS HOLDINGS PTY LTD

Mortgage customers more satisfied dealing with banks than mortgage brokers

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Mar-19

A Roy Morgan Single Source survey for the six months to January 2019 shows that home loan customers who obtained their loan in person at a bank branch had a satisfaction rating of 77.2%, compared to 75.1% for those who used a mortgage broker. Dealing in person with a mobile bank representative had the highest level of satisfaction, at 80.6%. It is important to note that even among more recent home loans (held for under six years), satisfaction with going to a branch to obtain the loan was 79.8%, compared to 77.7% for mortgage brokers. Among the largest home loan banks, St George has the highest satisfaction with loans obtained through mortgage brokers (83.9%), closely followed by Bankwest (81.0%). Satisfaction among those obtaining their home loan through a branch was the highest for Bendigo Bank with 89.6%, well ahead of St George on 79.6%. The Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 12,000 mortgage holders.

CORPORATES
ROY MORGAN LIMITED, ST GEORGE BANK LIMITED, BANKWEST, BENDIGO BANK

Finance Royal Commission likely to disrupt distribution of financial products

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Feb-19

Financial intermediaries (including mortgage brokers and financial planners) currently account for the distribution of 35% of the total value of the major financial products. A number of the recommendations of the Financial Services Royal Commission relate to mortgage brokers and financial planners and if adopted, are likely to negatively impact their usage, particularly as it relates to borrowers rather than the lenders paying fees. Financial planners are also likely to be impacted by the need for greater fee disclosure, clarification of independence, improved focus on the best interests of the customer and the need to provide service for any fee involved. These are some of the latest findings from Roy Morgan’s Single Source survey in the 12 months to August 2018, which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including detailed questioning across all aspects of investing, borrowing, insurance and banking.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Mortgage customer satisfaction highest when obtained directly from bank branch

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-Dec-18

New research from Roy Morgan shows that Australian home loan customers who obtained their loan in person at a bank branch had a satisfaction rating of 78.7% in the six months to October 2018, compared to 74.2% for customers who used a mortgage broker. Other channels also had lower satisfaction, including mobile bankers (75.3%) and telephone (77.7%). It is important to note that even among more recent home loans (held for under six years), satisfaction with going into a branch to obtain the loan was 80.9% compared to 76.1% for mortgage brokers. The satisfaction of mortgage broker customers of the big four banks is well below the rating given by those that have obtained their loan in person at a branch. The biggest gap in satisfaction is among ANZ mortgage customers, where those using a broker have only 63.4% satisfaction, compared to 76.2% for those who used a branch directly. Of the major home loan banks, Bendigo Bank is clearly the satisfaction leader when dealing in person at a branch with 91.2%. Satisfaction with home loan customers using mortgage brokers is highest for St George (86.9%). Roy Morgan’s Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 12,000 mortgage holders.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO BANK, ST GEORGE BANK LIMITED

CBA retreats to simpler bank model

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Original article by Alice Uribe, Joyce Moullakis
The Australian Financial Review – Page: 1 & 18 : 26-Jun-18

The Commonwealth Bank of Australia will focus on its core banking operations after revealing plans to demerge its wealth management, financial planning and mortgage broking assets into a separately listed company. Analysts says the move was widely expected given the reforms that are likely to emerge from the banking royal commission. CBA has advised that it will not hold a stake in CFS Group, which is expected to have a market capitalisation of around $A8bn. CBA may also divest its general insurance business in a separate transaction.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CFS GROUP, COLONIAL FIRST STATE GROUP LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED, AUSSIE HOME LOANS LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC, COUNTPLUS LIMITED – ASX CUP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, CONCENTRATED LEADERS FUND LIMITED – ASX CLF, SHAW AND PARTNERS LIMITED, MORNINGSTAR PTY LTD, COMMONWEALTH FINANCIAL PLANNING LIMITED, UBS HOLDINGS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED, AMP LIMITED – ASX AMP

Murray warns bank inquiry on dangers of over-reach

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 2 : 20-Jun-18

David Murray has cautioned the banking royal commission against recommending onerous sanctions against financial services providers in response to misconduct in the sector. He will use a speech on 20 June to warn that excessive regulation of lenders and financial advisers could force borrowers to seek loans from unregulated providers. Murray, who headed the federal government’s financial system inquiry, will also advocate retention of the vertically integrated model for the financial services industry.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AMP LIMITED – ASX AMP, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA

Millennials dominate mortgage broker market

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-May-18

A Roy Morgan Single Source survey shows that in the 12 months to March 2018, 48.6% of the existing home borrowers who used a mortgage broker over the last five years to obtain their current loan were Millennials. This was well above the share of any other generation. Together with Generation X (38.8%), they account for 87.4% of current home borrowers using mortgage brokers where their loan had been held for five years or less. Baby Boomers account for only 9.0% of this market, followed by Generation Z (3.1%) and Pre-Boomers (0.5%).

CORPORATES
ROY MORGAN LIMITED

CBA captured 40pc of Aussie mortgages

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Original article by James Frost
The Australian Financial Review – Page: 17 : 4-Apr-18

Data supplied to the banking royal commission shows that a significant proportion of home loans sold by Aussie Home Loans in 2015 were those offered by its parent company, the Commonwealth Bank of Australia. Up to 39.7 per cent of the mortgages that Aussie Home Loans sold by volume in 2015 were from brands owned by the bank, including Bankwest and Aussie Select. Likewise, 37.5 per cent of mortgage loans sold by value were from CBA-owned brands. A key issue for the royal commission has been whether mortgage brokers are acting in the interests of their customers or the banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSSIE HOME LOANS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANK OF WESTERN AUSTRALIA LIMITED, AUSSIE SELECT

Mortgage customer satisfaction higher when deal directly with bank

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Mar-18

A Roy Morgan Single Source survey, which was carried out in the six months to January 2018, has found that home loan customers’ satisfaction with banks when using a mortgage broker was only 77.3%. This compares to 80.3% when home loans were obtained in person at a branch. Even among more recent home loans (held for under six years) satisfaction with going directly into a branch was 81.7%, compared to 78.7% for mortgage brokers. Home loan customers of Bendigo Bank who obtained their loan in person at a branch had the highest satisfaction with 92.6%, followed by Bankwest (87.3%) and St George (86.8%). The best of the big four was NAB with 82.4%, followed by ANZ (79.7%). All of the largest banks, with the exception of Westpac, had higher satisfaction when going direct rather than using mortgage brokers. Meanwhile, satisfaction when using mortgage brokers was highest for St George with 85.6%, Bankwest (82.1%) and Suncorp Bank (82.0%). Each of the big four were below the market average (77.3%) for home loan customer satisfaction when using a mortgage broker, with the best of them being NAB (76.4%) and Westpac (75.7%).

CORPORATES
ROY MORGAN LIMITED, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SUNCORP BANK

Interest-only loans plummet as banks clamp down on mortgage risk

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Original article by Michael Roddan
The Australian – Page: 13 & 14 : 16-Jan-18

New data suggests that the Australian Prudential Regulation Authority’s crackdown on interest-only mortgage loans is having an impact. Australian Fin­ancial Group’s latest mortgage index shows that 19 per cent of new mortgage loans in the December 2017 quarter were interest-only loans, compared with 47 per cent for the corresponding period in 2016. However, the size of the average mortgage loan rose by 2.8 per cent nationwide in the year to November, and by 4.3 per cent in Victoria.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DIGITAL FINANCE ANALYTICS, MOODY’S INVESTORS SERVICE INCORPORATED