Consumers still value brokers over banks
Despite the challenging landscape of the finance and mortgage broker sector post-Banking Royal Commission, consumers in growing numbers are still voting for brokers over banks as the provider for lending options, says Mentor Education Group founder, Mark Sinclair.
CoreLogic research group, Comparator, revealed brokers had settled $46.1 billion in home loans as of the end of March, which was approximately 55.3 per cent of home loans and a 1.7 per cent increase on the same period last year.
The figures were reinforced by data from the Mortgage and Finance Association of Australia, which said the proportion of loans written by the third-party channel had reached its highest figure ever at the end of the March this year.
Sinclair said the upward trend in consumer sentiment could only mean good news for the mortgage and finance broker sector and its practitioners.
“The mortgage broking industry has not been immune from scrutiny and undergone immense change primarily in response to ASIC, NCCP, ACL and APRA requirements including the need for licensing of mortgage brokers,” he said.
“Against a background of more ‘speed bumps’ comprising further regulatory changes, tightening lending practices and consumer expectation challenges is the embedded home ownership Australian mindset – and this will continue to be the main driver for upward demand for mortgage brokers.”
Sinclair said over 160 students undertook the inaugural Diploma of Finance and Mortgage Broking Management course last year, adding that it was inevitable the broking sector would follow the financial planning industry in terms of education requirements.
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