New research into the banking sector could indicate greater opportunity for mortgage brokers. Data from Roy Morgan Research shows that satisfaction levels from personal customers of banks reached a new high during December 2013.
The so-called big four banks scored 80.1 per cent satisfaction, an increase of 0.2 per cent from November. This increase was attributed to interest rate reductions for home loan customers.
However, the incline in home loan customer satisfaction comes at the same time as a drop in satisfaction among term deposit customers.
Norman Morris, industry communications director for Roy Morgan Research, said the eight interest rate reductions in home loans over the past two years may be leading to a rise in satisfaction from home loan customers, but it is actually having the opposite effect on term deposit customers.
“With term deposit rates now generally below 4 per cent and many people such as retirees relying on them for income, it is understandable that they are beginning to show a drop in satisfaction with their bank,” Mr Morris said.
“It will be important therefore when interest rates eventually rise that this group receive the full increase just as home loan customers expect to receive the full reductions when the cash rate declines.”
This data makes two things clear.
First, it is the low interest rate environment for home loan borrowers that is increasing satisfaction, not bank service as a whole. This means that a mortgage broker who is able to provide his or her clients with low interest rate opportunities has just as good a chance of growing their business.
Secondly, low interest rates are driving home loan activity, as more customers are seeking home finance. While it’s unclear how long historically low rates will last, this does show that the current market offers plenty of potential business for mortgage brokers.
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