It’s not a secret… The Commission has concluded its investigation into the lending industry.
Australians need to recognize the importance of the services provided by brokers in the banking and finance industries and other related industries like insurance.
Even though the investigation was initiated due to misconduct by banks, brokers were also included in the investigation.
Only 1% of complaints about the lending sector were made about brokers.
Mortgage broker provide advice on upfront, ongoing, and ending costs to help home buyers find the right loan option for them. They assist people in finding affordable loan products. Broker services are affordable because of the spacing of indirect commissions.
Homebuyers may be required to pay upfront fees to broker services. They already have other expenses that will impact settlement time so it would be difficult for them to pay for the broker’s valuable services.
This guide will help you to understand the immense benefits and value brokers offer and why they are so important.
This will allow you to understand the connection between affordable loans products, competition, and the health of your economy.
You will be able to understand their roles in helping consumers, and maintaining a balanced lending environment by the end of this guide.
What Is The Impact Of Mortgage Brokers On The Home Loan Market?
The Mortgage & Finance Association of Australia has released the latest report that shows brokers had the highest share of home loans in history.
This was particularly impressive considering that the home loan market experienced a decrease of $8.46 trillion between 2017 and 2018.
Brokers accounted for 59.1% of home loan sales during the September 2018 quarter. Its market share in the same period was 55.7% 2017. This was an increase of 53.6% from 2016. The broker volume in the 2017-2018 period fell by around 3%.
Despite the decline in market share, impressive broker results are evident.
According to MFAA’s CEO, these numbers show the trust and confidence that consumers place in their brokers. The growth is also a sign of the importance of maintaining mortgage brokers’ services in a difficult time.
The CEO stated that brokers are a valuable resource for helping people in need of home loans. The comparator provided the data for the MFAA. Each quarter, the entity compiles statistics and calculates loan values using data from 18 top aggregators or brokers.
Are Buyers More Satisfied With Brokers?
Statistics from the MFAA show that buyer satisfaction with brokers has remained above 90% for many decades. It has risen to 95% in recent years. Over 95% of those interviewed said they would use a broker again. A little more than 65% of buyers felt satisfied after working with a major lender.
Do Brokers Offer A Personalised Service?
Brokers can identify lenders that can assist buyers with particular circumstances. A broker can assist buyers who don’t have the funds to pay a down payment or want to explore refinancing options.
Because brokers are knowledgeable about alternative and mainstream lending options, they can help people find loans that meet their specific needs. They help people find loans they can afford, both in terms of upfront fees and long-term payments.
Many homebuyers in rural Australia value personalised services and more options. Rural home buyers are often able to access special and lower-income options.