It’s hard to overstate the importance of that. It makes brokers extremely important conduits for lenders who want clients that represent long-term revenue—and what lender doesn’t?
That fact was established once again with the release of CMHC’s 2015 First-Time Homebuyers Survey. Here are five other stats brokers need to know from that report:
- 73% who went online did so to compare other mortgage products.
- As a broker or lender, do you have ways to help consumers compare your offerings to others?
- 30% of first-time buyers found their lender or broker site through online ads.
- Mortgage providers seem to be increasingly utilizing banner ads, especially retargeting banners, which have up to 70% higher conversion rates. Overall, less than 1 in 1,000 consumers click banner ads. But posting targeted attention-grabbing ads, “above the fold,” and in relevant media can boost click-through to 1 in 100 or better.
- 98% of first-time buyers (FTBs) who received a recommendation to use a specific lender ended up using the lender channel.
- These recommendations are most likely to come from real estate agents. It’s no surprise then that banks pay real estate brokerages up to 50 bps or more for referrals.
- 43% of FTBs arranging their mortgage directly with a lender dealt with someone who exclusively specialized in mortgages.
- It’s your biggest financial obligation, folks, and good advice can pay for itself 10-fold. Choose a mortgage expert, not a jack-of-all trades. If you want investing or insurance advice, get a separate referral.
- Providing advice on long-term mortgage strategies can increase a first-time buyer’s satisfaction with their mortgage professional by up to 85%.
- This is something very few online mortgage discounters focus on. Providing thoughtful, customized mortgage amortization plans is a differentiator for any originator.
Here are a few more stats of interest from CMHC’s report…
Use of Online Resources
- 83% of FTBs went online to gather information about mortgage options and features (roughly the same as last year, and likely under-reported).
- Of first-time mortgage shoppers who went online:
- 53% visited lender sites, while almost one-third (31%) went to broker sites.
- 70% used an Internet search engine such as Google when looking for lender or broker sites.
- 84% used an online mortgage calculator.
- 37% used different social media platforms to research mortgage information (vs.19% for other mortgage consumers).
- 26% used a mobile device to find mortgage-related information.
- In about one-in-five cases, mobile users accessed a mortgage-related app.
Interaction with Mortgage Professionals
- 42% of repeat buyers reported arranging their mortgage through a mortgage broker.
- 57% of broker users and 54% of lender customers said the desire to get the best rate or deal had a “great deal” of influence on where they got their mortgage.
- 79% of those receiving a recommendation to use a specific broker ended up using a broker.
- 72% of first-time buyers who switched financial institutions arranged their mortgage through a broker.
- Half of first-time buyers who received advice from their mortgage professional reported the advice to be “very useful.”
- There’s clearly a huge opportunity to better educate new homeowners.
- 34% of first-time buyers “totally agreed” that they got the best mortgage deal for their needs (vs.47% for repeat buyers).
Survey note: CMHC’s survey interviewed 788 first-time homebuyers from across Canada. Individuals polled had all undertaken a mortgage transaction in the past 12 months and all were one of the prime decision-makers within their household for matters relating to housing finance and mortgages.