How Brokers Make the Mortgage Markets Better

By: First Choice Mortgage Brokers
 
SYDNEY - June 30, 2021 - PRLog -- A new report published by DAE (Deloitte Access Economics) mortgage brokers makes the mortgage markets work better. They expand choices and boost competition between market lenders, which pushes them to provide superior customer service and more competitive mortgage pricing.

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 focus of the PC's (Productivity Commission) review of the Australian financial system competition and the financial services royal commission.

The aim of the DAE report is to provide the most "up-to-date body of information" about the mortgage industry to broaden the information about the role of mortgage brokers (https://www.firstchoicemortgage.com.au/) in the market for policymakers. It explains how important brokers are to the economy, the consumer, and to small lenders.

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.
  • The dimensions and the history of the brokering industry
  • The value mortgage brokering brings to the economy
  • The benefits and outcomes for consumers
  • The value potential of brokers for lenders

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/).
  • upplies $2.9 billion to Australia's economy every year.

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/) on 1800 111 455 (tel:1800%20111%20455).

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Tags:Mortgage Brokers
Industry:Financial
Location:Sydney - New South Wales - Australia
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