Today, the Mortgage Broking Industry Group* (MBIG) has launched The Value of Mortgage Broking, a report by Deloitte Access Economics.
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 was commissioned by MBIG to help all Australians - from financial regulators to everyday home buyers - better understand the role and value that mortgage brokers bring to the Australian market. Given the ongoing scrutiny on the industry during 2018, it is critical that we have a credible and independent report that clearly outlines the importance of the broker channel.
we have a credible and independent report that clearly outlines the importance of the broker channel.
You can click here to view the report, however, 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 demonstrate the value and service you are delivering to your customers - a testament to the hard work and dedication of the broking industry across the country.
To make it easy for you to digest and share the key findings from this report with your customers, you can click here to download (available to MFAA members only):
- Report highlights
- Customer fact sheet
- Infographics highlighting key data points, which you're invited to share on social media
- Member outreach fact sheet with accompanying cover letter
The MBIG group members are also working with the media, government and industry stakeholders to share the findings of this report far and wide, and we will continue to leverage this report as we advocate on your behalf over the coming months and years.
Chief Executive Officer
Mortgage & Finance Association of Australia (MFAA)
*The Mortgage Broking Industry Group (MBIG) comprises AFG, Astute Financial, Aussie, Choice Aggregation, Connective, FAST, Finance Brokers Association of Australia, Loan Market, Mortgage & Finance Association of Australia, Mortgage Choice, National Mortgage Brokers, PLAN Australia and Smartline.