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Increasing numbers of borrowers are turning to mortgage brokers

Property buyers use mortgage brokers

Property buyers are turning to mortgage brokers in record numbers, which is good news for both of us.

We know we’re beating our own drum a little bit here, but please bear with us.

In a time when the royal commission is dominating headlines and consumer confidence in the big banks is tanking, the mortgage broking industry as a whole is proving worthy of people’s trust.

During the September 2018 quarter, mortgage brokers settled an unprecedented 59.1% of all residential home loans.

That’s up from 53.6% in 2016 and 55.7 per cent in 2017 over the same period.

MFAA CEO Mike Felton points out that the result reflects not only the trust and confidence customers have in their mortgage broker, but the systemic importance of the mortgage broking industry.

“As banks have persisted in making it more difficult to secure a loan, turning many would-be borrowers away, consumers have continued to increasingly utilise the broker channel for experience, expertise and greater market choice to secure access to credit,” Mr Felton says.

 

How do brokers benefit you?

According to Deloitte Access Economics, over the past three decades brokers have contributed to the fall in net interest margin for banks of over 3% points.

“In addition to providing customers access to a panel of 34 lenders on average, brokers are ideally positioned to help customers, especially those with more complex lending scenarios, to understand the ever-evolving application process and provide the information necessary to meet changing lender requirements,” adds Mr Felton.

With the stats showing that more and more customers are relying on mortgage brokers for assistance, borrowers clearly agree with this too.

But the best part? Deloitte’s report shows that 9 out of 10 customers are satisfied with the services provided by mortgage brokers.

Which makes it even more puzzling why Royal Commission recommendations threaten the mortgage broking industry.

 

*** Post EDITS following Royal Commission Recomendations ***

To ensure mortgage brokers can continue to bring competition to the lending space and provide Australian borrowers with access to lending from smaller banks and institutions, we need your help.

If you’ve been happy with the way we provide our services – whether it was recently or as long as 18 years ago – please take a few moments to show your support by emailing your local MP and signing a petition. Emailing your MP is much simpler than it sounds – please click the button below and add a few details.

 

Learn more about the proposed changes here

Sign the Petition here

 
 

By taking this action, you’re showing your support for an industry which has brought competition to the Australian finance market.

You’re showing your support for an industry which has grown steadily on its own over the last few decades and now originates 59.1% of all mortgages in Australia.

And you’re showing support for your team of mortgage brokers, a team who’ve worked around the clock for our clients for the last two decades, doing our best to ensure lenders don’t take more than they need to, out of your own back pocket.

We’d also like to thank you for your support and all the words of encouragement we’ve received from so many of you.

Thank you in advance,

Your broker behind you,

– Team MMO

Award Winning Mortgage Professionals