‘Mortgage brokers make mortgage markets work better.’
Given mortgage brokers have helped settle more than half of all residential loans across Australia no wonder they have become a focus of scrutiny within the financial sector in recent times. The new report from Deloitte Access Economics has found that brokers help drive competition, increase consumer choice and lead to ‘better service levels and competitive mortgage pricing’.
Key findings from the report are listed below:
- The mortgage broking industry has contributed to a fall in the net interest margins of lenders by more than 3% over the past 30 years.
- Mortgage brokers drive competition and support all Australian home buyers and investors through providing improved access to lenders other than the big four banks and their affiliates. On average brokers have access to a panel of 34 lenders and use 10, thus bringing added choice for all consumers.
- Contributing to more than $2.9 billion to the Australian economy in 2016-17, the mortgage broking industry supported more than 21,100 full time equivalent jobs.
- Mortgage brokers depend on developing and more importantly maintaining strong customer relationships. Research have shown that more than 90% of consumers are happy with their existing mortgage broker and more than 70% of broking business is derived from existing customers.
Please click here to read Deloitte’s full article on how the mortgage broking industry contributes to customers, lenders and the broader economy.
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