Brokers more Popular than Ever
Mortgage brokers are now responsible for writing over half of Australia's home loans and are valued for their choice, expertise and convenience, according to a new survey commissioned by the Mortgage and Finance Association of Australia (MFAA).
From a 49.9 per cent share of the market in the March 2014 quarter, total new home lending to mortgage brokers increased to 51.9 per cent in the March 2015 quarter.
Over this time there was a $44.2 billion increase in mortgage lending across Australia and brokers were responsible for 71 per cent of this increase, Australian Bureau of Statistics data reveals.
Brokers were also found to be proficient at matching the right product to customer's needs. In fact 30.2 per cent of broker initiated home loans went to smaller lenders, demonstrating that brokers offer consumers real choice and have access to a wider range of mortgage products than banks or other financial organisations.
Investors in particular are convinced of the value of using a mortgage broker, with research showing that 40.5 per cent of broker originated loans are from investors. Owner-occupiers follow closely behind at 37 per cent of broker-originated loans, then first home buyers at 14 per cent and commercial borrowers at 6.0 per cent.
Lenders are also complimentary of the role of mortgage brokers. Those interviewed for the MFAA study said lenders were moving to a partnership model with brokers, whereby both work together to provide customers with the most appropriate proposition. Great news for customers!