A new report suggests bank reps are gaining ground in their ability to convert first time homebuyers into clients.
spring survey report, compiled by the national organization between January 2013 and May 2015, found mortgage brokers were able to take 64 per cent of first-time buyers from ‘consult to sale’ – that is, from prospect to client. Bank representatives, meanwhile, were able to convert 63 per cent of first-time buyers from consult to sale.
But brokers still have a lot of work ahead of them: 75 per cent of first-time buyers consulted with a bank rep, compared to just 61 per cent of first-time buyers who consulted with brokers.
But brokers on the ground say the fact that more than half of Canadian homebuyers are consulting with a mortgage broker at all is quite remarkable.
“I think you have some fundamental challenges there,” says mortgage veteran, Dustan Woodhouse
. “(Banks) have the opportunity that we don’t have. Potential first-time homebuyers already have an existing relationship with that financial institution. So how does a broker fight that advantage?”
Woodhouse says the Internet has certainly helped given that more than 40 per cent of buyers are between 18 and 34 years of age.
“First-time homebuyers are the Internet generation,” he says. “So they’re researching and they’re coming across mortgage brokers and realizing there’s an independent agent who will work for them for free.”
To read the full report, click here.