Mortgage Broking
In 2000, there were more Australian home mortgage borrowers than ever before and
they were borrowing more.
As government initiatives such as the First Home Owners Grant and property investment
tax incentives encouraged still more borrowing, home equity was also being freed up
for use on renovations, cars and investments.
"Bank bashing" had also become a spectator sport in the media, with many borrowers
consequently losing trust in traditional lenders.
It was the perfect time for a new breed - independent mortgage brokers - to make their
mark on an increasingly dissatisfied market.
Consumers quickly adopted these newcomers, using them to shop around on their
behalf, thereby gaining access to a variety of lenders and loan products without having
to do the legwork.
In the space of five years, numbers of independent mortgage brokers in Australia
moved from an insignificant base to around 18,000 operators.
In a Technology Brief report dated March, 2005, JP Morgan's Chief Banking Analyst,
Brian Johnson, said: "The Australian mortgage industry is undergoing significant
change as major banks lose market share to mortgage brokers.
"Brokers are here to stay and now account for up to 45% of new loans."
The experience overseas suggests that in the coming
years, mortgage brokers could be introducing up to 80%
of all loans.
While the actual amount of new loans that mortgage brokers introduce varies from
between 30% and 45%, there is no doubt that the Australian mortgage industry is
strong and is set to continue to grow.
We feel that the next generation Mortgage Broker and/or Mortgage consultant will be better educated, informed, experienced and enjoy an intimate understanding of the home loan industry.
Audit and compliance together with World's best home loan practices will be with us going forward.
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