The Value of Mortgage Broking, the recently published Deloitte Access Economics report commissioned by the Mortgage Broking Industry Group (MBIG) had found that mortgage brokers drive competition and deliver greater choice and valuable services to Australians.
The report was produced to provide Australians with greater transparency into the role mortgage brokers play in the market, and the value they provide, and comes at a time when the industry is being heavily scrutinised.
The report is a great asset to share with your referral network, to reinforce the value you offer, as well as a way to re-engage and start a conversation with them.
The report found that mortgage brokers drove competition in the lending market by providing access to a wide range of lenders (the average mortgage broker has access to 34 lenders and uses an average of 10 lenders on their panel), helping to drive down interest rates for all Australian home buyers and investors.
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.
MFAA CEO, Mike Felton, said that the report provided important insight into the industry and the value it provides to everyday Australian homebuyers – particularly in helping to drive lower interest rates for all consumers, not only those who use a broker.
Other report highlights include:
• More than 90 per cent of mortgage broker customers are happy with the service they receive.
• Mortgage brokers are improving access to lenders that are not major banks or their affiliates.
• The four major banks account for just 50.7 per cent of broker-originated loans.
• An average mortgage broker has 13.8 years’ industry experience.
• 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 equivalent jobs.
• The mortgage broking industry contributes $2.9 billion to the Australian economy each year.
• 64 per cent of brokers have education and training above their required qualifications.
