online brokers impact on regular brokers

Have any mortgage brokers experienced a noticeable impact to their client base due to the increasing number of online brokers?

Basically wondering if they have any effect on the total number of deals, or are they just segmenting the market into those clients focused on service vs those focused on price?

 

no.

actually that might be why I am getting more and more client enquiries!

 

What are online brokers?
Aren't all brokers online?

 

I haven't noticed a difference, but my target clients are completely different to an online lenders target client.

 

I think the brokers on this forum won't see any difference as we have a totally different clientele to those who are going to comparison sites.

 

I'm practically an online broker - the vast majority of my work is done online.

Unless you're talking about the cheap, no frill on line lenders? Then I agree with above. It's not a market I generally dabble in - but when I do, I've got a few competitive lenders on my panel that compete in that space

Cheers

Jamie

 

Most people don't trust putting their credit card details into a HTTPS site. Not sure many will ever trust an online broker with the biggest financial commitment of their life.

 

I don't know, nothing would surprise me regarding the stupidity of the masses who consider the lowest price only.

 

Scepticism aside, bottom feeders will look at the headline rate and think 'that's 0.??% better than my current rate' & not taking into account other fees, charges, convenience, serviceability, effect on structuring, crossing etc.

Just because a computer gives you an answer doesn't mean that it has provided the optimum solution.

 

I dunno. Only about one in fifty clients ask to send files that have some level of protection. Most send us everything via email with no security and don't give it a second thought. Almost nobody asks how we store information (and brokers have everything an identity thief could ever want).

We are currently moving to a platform where clients will be able to upload documents directly via a secure portal.

 

That's missing the point. These people know and trust you, you have built rapport, you have relationships backed no doubt in most cases by referrals.

That's a lot different than plugging your details into a website without speaking to anyone and 3 days later loan documents arrive and you sign and send back (I actually have no idea how an online broker works in this regards )

I am confident if i asked 100 of my friend and family, not a single one would be comfortable with getting a loan online.

 

This. People hunting online for a "mortgage broker" are most probably shopping with a low rate as a primary goal, with very little or zero consideration to structure/products/planning etc. No love lost if these people don't hit up the more skilled brokers on this forum.

I put "mortgage broker" in quotes because the good ones do so much more than land you a good rate; maybe a new role "mortgage planner" is needed

 

A good mortgage broker is a trusted adviser, than someone who knows how to sort a product list from lowest interest rate to highest.

Not to say that there aren't a lot of brokers out there who think the latter is providing the best service for their clients.

 

A very interesting thread and very similar to the similar situation with insurance. The multitude of possibilities for simple transactional insurance, not just in personal insurance but growing in the more complicated area of commercial insurance. This leads to people buying on price alone and often learning the hard way that they really didn't understand what they were getting or what their real risks are.

 

For the standard PAYG employee it's not going to impact them, but for those with more complex income/investment properties, it could signal the start of more credit hits on a file and people running to a real broker for advice.
I would think that the branches would feel more impact than brokers. How much easier would it be for someone to plug in their details on their lunchbreak rather than having to make an appointment with a branch?