The Real Value Of Having A Mortgage Broker By Your Side!
Deloitte Access Economics recently completed a research report into the value that Mortgage Brokers bring to the banking industry, and the benefits they have on Australian consumers, and the Australian Economy. In the September quarter of 2017, The Mortgage Broking Channel was responsible for writing over 55.7% of residential loans and contributing 2.9 Billion Dollars to the Australian Economy during 2016-17. So, what were the benefits for Australian Consumers?
Brokers Created Competition In The Market, Leading to Reduced Interest Rates
As Mortgage Brokers have access to over 30 different lenders, brokers are able to provide consumers access to a diverse range of lenders and products. With greater diversity available to Mortgage Brokers, it allows those smaller tier lenders without the branch network, to compete in the market. With the help of Brokers, smaller lenders have seen and increase from 21.4% to 27.9% in terms of market share over the past four years.
Without the access of brokers, smaller lenders would have needed to expand their branch footprint across Australia by an additional 118 branches in order to maintain their current market share.
Not only has greater choice become available to borrowers, but also increased competition. Over the past 30 years, lenders Net Interest Margins have decreased by more than three percentage points as a direct result of the broker channel. Providing Australian consumers, access to more competitive mortgage rates and products.
Mortgage Brokers Are There To Help Those Who Need It Most
Mortgage Brokers have been able assist First Home Buyers to enter the market, even with property price fluctuations. Of those who settled a loan through a Mortgage Broker in the September quarter of 2017, 23% of those were First Home Buyers.
First Home Buyers have been able to receive the benefit of education and insight from Mortgage Brokers over the years, providing First Home Buyers confidence when trying to navigate through the complex home loan application process.
And Australians Have Loved Them For It
The work Brokers have done for their clients has not gone unnoticed, with 90% of Brokers customers stating how happy they were with the service they received.
So, if you are considering entering the property market, upgrading or looking to refinance your home loan, having the helping hand of a Mortgage Broker can be extremely beneficial in long run.
To read the full report, please click here.