Mortgage Broker

consumerinsights 42 | summer 2015 mbabc.ca MORTGAGEBROKER Online Mortgage Information Gathering Online research continues to be the most popular way to gather mortgage information, with 78% of mortgage consumers looking to various online sources to find out about mortgage options and features. Among those going online, 56% went to lender websites, 24% to broker websites and 15% to both lender and broker websites. When looking for lender and broker websites, two- thirds used an Internet search engine, such as Google. A large majority visited their current lender website (69%), while 47% went directly to their broker website. A significant number also relied on referrals from family and friends: 49% among those looking for broker websites and 43% for lender websites. Only about one in four mortgage consumers reported that they found their lender website (23%) or broker website (28%) through online advertising. As in previous years, the majority of mortgage consumers who went online used a mortgage calculator (70%). Half (51%) used a calculator from a lender website, followed by 16% from a broker website. Other notable sources of online calculators included CMHC (15%). e most popular use of online calculators included determining mortgage payments (62%), while about a third used a mortgage comparison calculator (35%) or a mortgage affordability calculator (34%). e use of social media to gather mortgage information remains stable at 20%. Facebook (53%), blogs (27%) and forums (26%) continue to be the most popular platforms among those looking to social media. Platforms that mortgage consumers rated as "very useful" include online forums (40%), LinkedIn (37%) and YouTube (36%). Accessing online mortgage information through mobile devices is still in the early stages of adoption. Only 17% of mortgage consumers reported using a mobile device. However, among mobile users, tablets are the most common device used (58%). Among those using a mobile device, 22% used a mortgage related app. In 43% of the cases, the app was provided by a lender while 30% used an app provided by a broker. Over half (53%) of all apps accessed featured a mortgage calculator. Mortgage Broker Share & Use Mortgage broker market share is trending upwards for most market segments. is is particularly evident among repeat buyers where market share has increased from 32% in 2012 to 42% in 2015. Over this time period broker share has also increased among first-time buyers (48% to 55%) and refinancers (27% to 33%). Among renewers, broker share has remained stable at around 21%. Overall, recent buyers were satisfied with their experience using a broker (79%). Almost half (47%) "totally agreed" they were satisfied and 32% "somewhat agreed" they were satisfied. About three-quarters of broker clients indicated they would likely use their broker again in the future (72%) or would likely recommend their broker to family or friends (73%). Although brokers enjoy high levels of client satisfaction, 17% of clients reported changing brokers during the mortgage process. As expected, the main reason for changing was to get a better rate or deal (35%). Lender Loyalty & Channel Most mortgage consumers remained loyal to their existing lender. is is most prominent among renewers at 86%. is year lender loyalty among repeat buyers reached 77%, compared to 67% last year. Lender loyalty continues to be lowest among first-time buyers: 47% arranged their mortgage with the financial institution they were dealing with most (54% in 2014). Although interest rate remains the main reason for mortgage consumers to switch (63%), conversely 58% of mortgage consumers indicated that an existing relationship was the main reason for remaining loyal. Mortgage brokers also have an impact on whether a client remains loyal to their existing lender. Among clients switching lenders, six in 10 used the services of a broker. Forty-two per cent of recent homebuyers used a mobile mortgage specialist to arrange their current mortgage, 32% used a lender branch and 22% used a lender financial planner. Regardless of the channel used, the majority of recent buyers (79%) were satisfied with their lender experience (42% "totally agreed" and 37% "somewhat agreed" they were satisfied). Among recent buyers, lender satisfaction by channel is as follows: mobile mortgage specialist (84%), branch (77%) and financial planner (76%). e majority of those using a lender directly indicated they would likely use their lender again in the future (76%) or would likely recommend their lender to family or friends (69%). Product Offering from Mortgage Professionals When obtaining their current mortgage, about four in 10 mortgage consumers were also offered other types of financial products by their mortgage professional (39% for broker users and 42% of lender users). In most cases, mortgage life insurance and lines of credit were the most common financial products offered. In fact, 78% of lender clients and 72% of broker clients reported being offered mortgage life insurance and 66% of lender clients and 48% of broker clients reported being offered a line of credit. However, among the products offered during the mortgage process, consumers are more likely to accept a line of credit (65% for both broker and lender users) or credit card (58% for broker users and 49% for lender users). What CMHC's 17th annual survey revealed: market share is up in most markets By Canada Mortgage and Housing Corporation Fresh Consumer Insights

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