About the market
The latest home loan industry market shares figures show that a Mortgage Broker are the keys to driving competition in the mortgage market. MFAA research shows that Mortgage Brokers have continued to lift their provision of new loans in the home loan market during the September Quarter, to reach a share of the market of 51.5%.
Why lenders use brokers
Dramatic growth of the Broking industry – can’t afford to miss out. Lenders today acknowledge that many consumers prefer to use a Mortgage Broker. High cost of establishing physical presence e.g. retail outlets, mobile lenders, etc. Outsourced distribution model which only pays on success. Cross sell opportunity – share of wallet. Public’s reluctance to adopt online technology when it comes to home loan applications. The internet is a research tool, very few will use the internet to formally apply for a home loan. Speed to market for new players. Mortgage Brokers allow lenders who don’t have a local presence a much quicker and cost effective entry into the market, e.g. ING Direct, Suncorp, BankWest & AMP. Spread risk across states where no or little presence.
Why borrowers use brokers
Many borrowers today are time poor / information poor or both. A Mortgage Broker will manage the whole process from start to finish and is focussed on achieving the best result for the customer. Mortgage Brokers generally have a higher level of expertise across a broader product base than bank staff. Often an additional service offered within broader or “main” business.
This article was supplied by Steven Hudson from Tenby Finance For more information about becoming a Professional Credit Advisor call Steven Hudson on 0411 051 633