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How Brokers Make the Mortgage Markets Better
By: First Choice Mortgage Brokers
DEA's report is The Value of Mortgage Broking and it was published 24 July 2018. It outlines the evolution, expansion, and the role mortgage brokers play in Australian mortgage lending. It also discusses the impact broking has on Australia's economy, lender value proposition, and customer value proposition.
The report was released in the face of the increased scrutiny of the broker sector (the ordeal of broker remuneration)
The aim of the DAE report is to provide the most "up-to-date body of information"
The DAE report is 47-pages and it took six months of research and data gathering to complete. It is broken up into four parts.
Bringing data forward from a vast range of sources such as the ASIC, MFAA (Mortgage & Finance Association of Australia), the ABS, and articles from The Advisor, their report uncovers new data they collected from a nationally represented survey of 1,635 brokers (independent and those who work in a group setting), consults with industry professionals and participants, and a focus group workshop that included mortgage brokers (https://www.firstchoicemortgage.com.au/)
The DAE report confirmed that "mortgage brokers sell more loans than lenders' own distribution channels (e.g. through branches, mobile lenders, and over the telephone)", using the statistics from the MFAA that showed that the mortgage brokers' share of new residential loan settlements attained 55.7 per cent by value during the September 2017 quarter.
More insights from the report included how mortgage brokers encourage competitive pricing and boost consumer's options and services. It reads, "Overall, mortgage brokers make mortgage markets work better. They are intermediaries that provide consumers with information about the mortgage products available and the process to follow in applying for a mortgage."
It continues, "Mortgage brokers also provide lenders with an additional channel to arrange loans. Mortgage brokers increase choice and competition between lenders, leading to better service levels and competitive mortgage pricing."
If you are looking for a mortgage broker Sydney, please call First Choice Mortgage Brokers (https://www.firstchoicemortgage.com.au/)