Why are Mortgage Brokers Valuable?
In a report recently published by Deloitte Access Economics, the value of the Mortgage Broker was put under the spotlight. The full report can be accessed here. The report was commissioned by the Mortgage Broking Industry Group, which found that mortgage brokers drive competition and deliver greater choice and valuable services to Australians.
The report was prepared to provide consumers with a greater understanding of the role of the mortgage broker and what value they provide.
The timing of the report also comes at a time when the industry is being heavily scrutinised. The report is a great tool for mortgage brokers to share within their networks to help promote the value of brokers and to also help educate consumers about mortgage brokers roles and responsibilities.
The Value of Mortgage Broking report states that mortgage brokers drove competition by providing access to a wide range of lenders, therefore helping to drive down interest rates for all Australians.
The report indicated that on average, mortgage brokers had access to 34 lenders and worked with an average of 10 on their panel. In addition, the market share of broker-originated loans for lenders who are not major banks, or their affiliates has increased from 21.4 per cent to 27.9 per cent in just four years, highlighting the competition being driven by brokers.
Below are some other key highlights of the report:
- The four major banks account for just 50.7 % of broker-originated loans.
- Mortgage brokers are improving access to lenders that are not major banks or their affiliates.
- Brokers that are sole traders earn an average income after costs and before tax of $86,417.
- The mortgage broking industry supports more than 27,000 full-time
- 90 % of mortgage broker customers are happy with the service they receive.
- Mortgage brokers have an average of 13.8 years’ industry experience.
- The mortgage broking industry contributes $2.9 billion to the Australian economy each year.
- 64 % of brokers have education and training above their required qualifications.
The report provides an important insight into the mortgage broking industry and the value they bring to Australian home buyers.
To access the report click here to download it.
Is there anything else you think should have been included in the report?
Do you think the report correctly reflects the contribution Mortgage Brokers bring to consumers?
Let us know in the comments below.
Make sure you share this post and the report with your Mortgage Broker colleges.
Justin Steer is a real estate finance expert with nearly 20 years’ experience running businesses involved in the sale and management of both residential and commercial property. Justin is passionate about sharing his knowledge and insights in helping real estate agents and mortgage brokers to grow their business and create financial freedom.