The Value of Mortgage Broking,
The Value of Mortgage Broking, a report by Deloitte Access Economics has just been released.
This report demonstrates the value that our industry brings to consumers, lenders and the Australian economy, by driving competition and delivering greater choice and valuable services to the Australians who need them most.
The Value of Mortgage Broking report helps all Australians to better understand the role and value that mortgage brokers bring to the Australian market – whether they are financial regulators or everyday home buyers.
Given the ongoing scrutiny on the industry during 2018, it is important to have an independent report that clearly outlines the importance of the broker channel.
To view the report, click here:
The key findings of the report comprise:
• Mortgage brokers strengthen the entire Australian mortgage lending industry by fostering competition and therefore supporting all Australian home buyers and investors.
• The mortgage broker channel has contributed to a fall in lenders’ net interest margins of more than three percentage points over the past 30 years.
• More than 90 per cent of customers are happy with their mortgage broker’s performance.
• Mortgage brokers arrange more than half of all home loans each year, and this number continues to grow.
• Mortgage brokers, on average, have 13.8 years of industry experience.
• Mortgage brokers drive competition by improving access to lenders that are not major banks or their affiliates. The share for these lenders increased from 21.4 per cent in 2013 to 27.9 per cent in just four years.
• The average mortgage broker has access to 34 lenders and uses an average of 10 lenders on their panel, bringing more choice to Australian home buyers.
• Three in ten mortgages arranged by mortgage brokers are for customers in rural or regional areas, improving access to home lending for rural and regional Australians.
• The mortgage broking industry contributes $2.9 billion to the Australian economy each year, supporting more than 27,100 (full-time equivalent) jobs.
• Brokers that are sole traders earn an average income after costs and before tax of $86,417.
• Brokers depend on strong relationships – more than 70 per cent of mortgage brokers’ business is referred from existing customers.
These findings clearly demonstrates the value and service that finance brokers are delivering to their customers – a testament to the hard work and dedication of the broking industry across the country.
Chief Executive Officer
Mortgage & Finance Association of Australia (MFAA)