Despite the high real estate prices in major cities and Ile-de-France, credit rates are so low that many French people are gaining purchasing power and can thus acquire property. And they do not hesitate! But what proportion of borrowers use a broker? What age groups and which socio-professional category are the most sought after by brokers? What is their added value?
While brokers seem to be gaining market share, GoodOpinion questioned the French for Vousfinance on taking out their mortgage. Verdict: 35% of French people have used a broker for their mortgage, a figure up 6 points since 2015 and which even rises to 61% among 18-34 year olds (+ 21 points compared to 2015) and 50 % among Ile-de-France borrowers! Their motivations: essentially to obtain a more advantageous rate (55% of the responses), to save time (27%) and to be supported (23%).
Nearly one in three French people repay a mortgage
If some have chosen to go directly to a bank, 8% claim to have previously taken information from the site of a broker. In this context, Best Bank anticipates that brokers could intermediate 40% of mortgage loans by the end of 2020. Nearly one in 3 French repay a mortgage loan According to an GoodOpinion survey for Best Bank, 31% of French people currently have a mortgage loan In progress.
This figure is stable compared to the previous wave of this survey which had been carried out in 2015 (32%) even if those who have a credit are increasingly young. People aged 65 and over are less likely to repay a loan (14% of borrowers, -6 points), while the share of people aged 35 to 49 is increasing sharply (+7 points). 52% of French people aged 35 to 49 and 52% of CSP + – the target hearts of brokers – currently have a mortgage.
35% of French people have used a broker to take out their mortgage
Among people with a mortgage, 35% have used a mortgage broker, a figure up 6 points compared to 2015 confirming the idea of an increase in the market share of brokers in recent years. People aged 18 to 34 are more inclined to use a broker (61%) than the other age categories (21% for people aged 50 and over for example, a stable figure) and their proportion is growing very strongly (+ 21 points because they were only 40% to use it in 2015).
Similarly, the share of CSP + using a broker increased sharply, from 28% to 44% of them! Finally, it is in Ile-de-France that borrowers use the broker the most. They are now 1 in 2 (50%) against just over a third (36%) in 2015 …
Broker market share on the rise
“The results of this survey confirm our feeling that the market share of brokers has increased in recent years. It has more than doubled in 10 years, going from 15% in 2008 to 35% today and even 60% among young people under 35! This acceleration is due to the implementation of an increased regulation of our profession, to the increase in the number of brokerage agencies and to the upmarket of our profession, oriented more and more on service and support, well beyond just looking for the lowest rate… ”, analyzes Sir Rob, managing director and founder of Best Bank.
Online broker or physical agency?
Without question, the brokerage agency remains the privileged place for concluding contracts! The French who used a broker were mostly received in a physical agency, in almost 80% of the cases. In total, 27% of borrowers used an agency broker and 8% via a broker’s website, figures that have increased in the same way (+ 3 points for each channel) compared to 2015. What if young people under 35 use an online broker more than the average French (21%), 40% have chosen to go to a brokerage agency.
Lower rates and time savings through a broker
The French who use a broker in the context of their mortgage always do so mainly for financial reasons: 55% of them seek to obtain the most advantageous interest rate, 27% to save time, 23 % want to be advised and supported in all of their procedures.
But if the search for a lower rate remains the main motivation for using a broker, this reason is down compared to the first wave of the survey in 2015 (- 4 points) while the search for “support in the process ”progresses to rank third (+ 5 points). It is also worth highlighting a rise in other justifications, in particular the “willingness to be advised” (23%) and the “refusal to negotiate with banks” (17%). Thus, borrowers also call on a broker to obtain advice and support.
Brokers: added value based on advice and support
“In the current context of very low rates that we have known for several years, our added value is more than ever in the service and advice provided to our customers. Buying real estate, especially for the 1st time, is a complex act for which more and more French people want to be supported. But our job does not stop looking for credit, because we also advise them on loan insurance, housing and renovation assistance to which they are entitled… ”adds Sir Rob.
Growth and development in perspective!
If the results of the survey show that the French have more recourse to brokers than in 2015, other interesting data show that this trend could still progress in the years to come and that brokers could become unavoidable: among those who did not no mortgage, if they had to take out one, 42% of 24 and 34 year olds and 39% of 50 and 64 year olds would call on a broker. In addition, among those who did not use a broker, 8% of them nonetheless declared that they had taken information from a broker’s site (+ 2 points / 2015); a figure that even rises to 10% among those under 34. So if we add this figure of 8% to those who used a broker (35%), 43% of French people were in contact with a broker during research or underwriting their credit.
“We anticipate in the coming years that credit brokers could intermediate 40% of mortgage loans. Brokerage networks continue to develop – around thirty agencies per year for Best Bank – we recruit and train several hundred new financing advisers each year, while banks are in a rather opposite approach and consumers want more and more more advice, expertise and support. So many assets for the mortgage brokerage sector, ”concludes Sir Rob.
Methodology: GoodOpinion survey for Best Bank carried out on January 30 and 31, 2019 with a sample of 1,008 people, representative of the French population aged 18 and over, constituted according to the quota method, with regard to gender criteria, age, socio-professional category, agglomeration category and region of residence.