Aussies look to compare home loans as brokers do well
Mortgage brokers were not as severely hit by last year's lending slowdown as other areas of the home loan market, new research shows.
A study by the Market Intelligence Strategy Centre (MISC) has found that while the domestic mortgage market contracted by 11 per cent in the six months up to September 2010, 164 broker groups wrote only nine per cent less loans in the period.
According to the research, brokers' better-than-average performance showed that borrowers were keen to compare home loans and consider their options, rather than dealing directly with banks.
"Borrowers will naturally be encouraged to embrace channels they perceive afford them more assistance and more lender choice," said MISC.
In addition, the study showed that the average broker loan was worth $276,715 for the period while for direct loans the figure was $270,688.
The news comes after Australian Bureau of Statistics (ABS) data recently showed that the number of new home loans for owner-occupiers rose 2.5 per cent in November 2010, despite the Reserve Bank's decision to lift the official cash rate in that month.
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