The recent report from Deloitte Access Economics explored the role of mortgage brokers in Australia as well as the diverse impacts and value proposition of the broking industry.
Commissioned by the Mortgage Broking Industry Group (MBIG), the 47-page report’s primary purpose was to inform everyone from policymakers to first home buyers about the role of mortgage brokers and outline the economic contribution of the industry in Australia.
The analysis from surveys and publicly available data concludes that the mortgage broking industry contributed approximately $2.9 billion to the Australian economy in 2017, and the employment of more than 27000 full-time equivalent workers and 22000 part time workers.
What this report means to the mortgage broking industry
In light of recent doubt and scrutiny directed towards brokerages during 2018, this independent report is crucial in highlighting the importance of a mortgage broker amidst the uncertainty of the industry. Now there is a credible source that speaks volumes of the significance of this industry, and will serve as a critical reference in future discussions.
Finance Brokers Association of Australia (FBAA) executive director Peter White added that the report provided a “much clearer, succinct understanding of what the industry really looks like”.
“It’s not a report of self-interest, which some reports have been, it is a concrete report that can be cited with great confidence given the research quality and the neutrality.”
For smaller brokerage firms who need to establish trust with their customers, they now have the assurance of a credible report, and can focus on providing their best service for their customers instead of worrying about the future of the industry.
Other key findings and takeaways
- The mortgage broking industry drives competition within lenders, in turn benefitting all Australian home buyers and investors.
- More than 90 per cent of customers are happy with their mortgage broker’s service and performance.
- Mortgage broking channel has contributed to a three percentage point drop in lenders’ net interest margin over the past 30 years.
- The average mortgage broker has access to 34 different lenders and uses an average of 10 lenders on their panel.
- Sole trading brokers earn an average income after costs and before tax of $86,417.
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