The Value of Mortgage Broking
At Astute, we're confident that we can make a real difference in the purchase of your home but don't take our word for it. Learn here about an industry report that provides an insight into why it pays to use an experienced mortgage broker when securing funding for your property.
In 2018, a report was commissioned with Deloitte Access Economics by the Mortgage Broking Industry of Australia to promote more information about the role played by the mortgage broking industry. It was acknowledged out of this report that the industry role is very important in driving competition and choice with the major lending institutions in the country.
By definition, a mortgage broker is an intermediary between a financial lender and the home buyer for what will likely be the most significant purchase of their life. It’s one that is important to get right. It’s a complex process and mortgage brokers help borrowers through that process. Most importantly, they put more loan options in front of the home buyer.
Mortgage Brokers are responsible for over half of all loans written.
Of all the home loans that exist in Australia, over 56%* are arranged by Mortgage Brokers. That’s even more than the number of loans that come directly from financial institutions.
Mortgage broking has been important for competition. It has reduced the net interest margin, which is received by financial institutions by around 3 percentage points, putting that money directly back in the pocket of the homebuyer.
On average a home buyer can get access to up to 34 different lenders as well as the different financial products and services that they offer. That’s going to flow through into a deal that’s likely to be more suited to their circumstances. Over 25%* of all loans written are for first home buyer’s.
Over 28%* of loans written by mortgage brokers go to lender’s beyond the banks and their affiliates so that drives a lot of change in the market place.
For more information on the report, click here.