Tuesday 4th April 2023

Why Should You Choose Mortgage Brokers?

Why Should You Choose Mortgage Brokers?

Brokers remain in big demand! The latest Industry Intelligence Service (IIS) report released by the Mortgage and Finance Association of Australia (MFAA) has found the number of brokers has increased 5.2 per cent to 19,236, exceeding 19,000 for the first time since the IIS research commenced.

The 15th edition of this report covered the six-month period from 1 April 2022 to 30 September 2022, drawing on data supplied by 11 aggregator brands to provide industry and broker demographic and performance data.

MFAA chief executive Anja Pannek said the report shows how brokers continue to be relied on by Australia’s home buyers and business owners in the rising interest rate environment.

“We know that for many borrowers, the consecutive rate rises that occurred during the period the report covers were the first time they have experienced upwards movement in the cash rate,” Ms Pannek said.

“We’ve heard from our members that in the current environment clients are proactively reaching out to their broker to understand their options.”

The research found more mortgage broking businesses branching out into commercial lending, with an all-time record of more than 6,000 brokers now operating in this space.

The IIS report also found mortgage brokers settled $181.26 billion in residential home loans in the six-month period from April to September 2022, breaking previous records.

Why are borrowers choosing mortgage brokers?

In the current economic climate where we have seen official interest rates rise 10 times since May last year, many mortgage holders have been turning to brokers to try and secure a better deal on their home loan. A broker is best placed to find the most competitive home loan option. Mortgage brokers have access to a wide range of lenders and can assist borrowers throughout their home loan journey, from application to settlement.