Branch versus broker; mortgage customers more satisfied at the bank

Mortgage customers are most satisfied when they obtain their loan directly from a bank branch, recording a satisfaction rating of 78.7 per cent according to Roy Morgan data.

Roy Morgan research found that customers who went through a mortgage broker recorded lower satisfaction levels (74.2 per cent). In terms of mortgage options, brokers were beaten in satisfaction by mobile banking (75.3 per cent) and the telephone (77.7 per cent).

Even amongst newer home loans (held for under six years), satisfaction levels were still higher with those who had gone into a branch (80.9 per cent) versus mortgage brokers (76.1 per cent).

Home loan customer satisfaction: obtained through branch vs mortgage broker

Source: Roy Morgan

There is a significant satisfaction gap between big four bank customers who obtained a home loan in person at a branch compared to through a broker. The largest satisfaction gap was found with ANZ customers at 12.8 percentage points, with those who used a broker having 63.4 per cent satisfaction versus 76.2 per cent for those who used a branch.

Bendigo Bank recorded the highest satisfaction levels for in-branch customers at 91.2 per cent. This was followed by St George (83.2 per cent), Bankwest (81.5 per cent) and Suncorp Bank (79.0 per cent).

How Aussies are taking out home loans

Source: Roy Morgan

Taking out a home loan directly through a branch is still the most popular channel, accounting for 52.2 per cent of the market. This was followed by mortgage brokers (33.1 per cent), mobile banking (7.6 per cent), over the phone (3.8 per cent) and ‘other’ (3.3 per cent).

Norman Morris, Industry Communications Director, Roy Morgan, says “although mortgage brokers are an important channel for banks to acquire home loan customers, they have received considerable adverse publicity recently in the Finance Royal Commission.”

“As a result it is not surprising given this publicity, that there appears to be a number of issues that are negatively impacting bank home loan customer satisfaction when loans are sourced from them.

“By contrast, customers who obtained their home loan by going in person into a bank branch have higher satisfaction levels than those that use brokers, particularly for the big four banks.

“The data shown here is only a small part of what we have available regarding mortgage customers, their behaviour and satisfaction,” said Mr Morris.

Compare home loans in Australia