The Value of Mortgage Broking has been saved
The Value of Mortgage Broking
Assessing the industry's role in the economy
Deloitte Access Economics was engaged by the Mortgage Broking Industry Group to produce a report that provides an up to date body of information about the industry and its role in the economy, to inform the public debate.
Since the mid-1980s, the mortgage broking industry has changed and grown to be a critical part of the finance sector. Mortgage brokers now arrange more loans than lenders directly - 55.7%, by value in the September quarter 2017.1 Over 90% of mortgage broker customers were satisfied with the service provided.2
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. 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. Mortgage broking is a significant industry in its own right, contributing $2.9 billion in gross value added (GVA) to the Australian economy in FY2017 and supporting the employment of more than 27,100 full-time equivalent (FTE) workers.
However, the financial sector has been under greater scrutiny from regulators in recent times. Perceptions about the services mortgage brokers provide within broader public debate are not all positive. Deloitte Access Economics was engaged by the Mortgage Broking Industry Group to produce a report that provides an up to date body of information about the industry and its role in the economy, to inform the public debate. A continually improving mortgage broking sector will be good for consumers, lenders and the economy.
Published: July 2018
1. The estimate is based on a CoreLogic survey of the largest brokers and aggregators that account for around 95% of broker-introduced loans
2. Deloitte (2016). Customer experiences of using mortgage brokers.