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Mortgage customer satisfaction highest when obtained directly from bank branch

Source: Roy Morgan Single Source (Australia), 6 months to October 2018, n = 25,304.
Base: Australians 14+ with home loan, n = 6,256. N/A = small sample. 1 Based on number of home loans. 2 Excludes other methods of obtaining home loans. 3 Incudes banks not shown.
Home loan customers who obtained their loan in person at a bank branch have the highest satisfaction rating with 78.7%, compared to 74.2% satisfaction for those who used a mortgage broker. Other channels also had lower satisfaction with mobile bankers 75.3% and telephone 77.7%. It is important to note that even among more recent home loans (held for under six years), satisfaction with going into a branch to obtain the loan was 80.9% compared to 76.1% for mortgage brokers. 

These are some of the latest findings from Roy Morgan’s Single Source survey which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 12,000 mortgage holders. These latest results are based on interviews conducted in the six months to October 2018. 

Big four banks customers using mortgage brokers have low satisfaction

The satisfaction of the mortgage broker customers of the big four banks is well below the rating given by those that have obtained their loan in person at a branch. The biggest gap in satisfaction is among ANZ mortgage customers, where those using a broker have only 63.4% satisfaction, compared to 76.2% for those who used a branch directly. This gap of 12.8% points for the ANZ is followed by the NAB and Westpac both with lower satisfaction of 7.8% points for customers using brokers compared to branches. The CBA gap was smaller with 4.4% points lower satisfaction for their mortgage broker customers.

Of the major home loan banks, Bendigo Bank is clearly the satisfaction leader when dealing in person at a branch with 91.2%. They are followed by St George (83.2%), Bankwest (81.5%) and Suncorp Bank (79.0%). Satisfaction with home loan customers using mortgage brokers is highest for St George (86.9%), followed by Suncorp Bank (79.8%) and Bankwest (74.3%).

Home Loan Customer Satisfaction: Obtained through Branch vs Mortgage Broker2 - Largest Home Loan Banks1

Source: Roy Morgan Single Source (Australia), 6 months to October 2018, n = 25,304.
Base: Australians 14+ with home loan, n = 6,256. N/A = small sample. 1 Based on number of home loans. 2 Excludes other methods of obtaining home loans. 3 Incudes banks not shown.

Branches the most popular source of home loans

Despite the many channels available to obtain home loans, over half (52.2%) of all current loans were sourced from going in person to a bank branch. This is well ahead of the 33.1% who purchased their loan through a mortgage broker. With these two channels accounting for 85.3% of the current market, it is important for banks to know their relative performance in each in terms of customer satisfaction

Other channels used to obtain home loans that are measured for all major banks are, ‘in person with a mobile bank representative’ (7.6%, satisfaction 75.3%) and ‘over the phone’ (3.8%, satisfaction 77.7%).

Method Used To Obtain Home Loan

Source: Roy Morgan Single Source (Australia), 6 months to October 2018, n = 25,304.
Base: Australians 14+ with home loan, n = 6,256.

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. The full database enables an in-depth understanding of this important market, including profiles of the type of customers who use each of the major channels to acquire their home loan, long term trends, detailed demographics and psychographics. To find out more simply contact Roy Morgan.”

For comments or more information please contact:
Norman Morris, Industry Communications Director
Office: (+61) (03) 9224 5172
Norman.Morris@roymorgan.com


About Roy Morgan

Roy Morgan is the largest independent Australian research company, with offices throughout Australia, as well as in Indonesia, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan has over 70 years’ experience in collecting objective, independent information on consumers.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2