Mortgage Brokers Now Account for Two Thirds of Australian Mortgages

New data reveals that mortgage brokers now originate more than two thirds of mortgages in Australia. Recent events in the Australian investment lending market mean even more borrowers are likely to use mortgage brokers.

Melbourne, Australia – August 17, 2015 /PressCable/ —

Latest statistic show that 66.3% of mortgages in Australia originate through mortgage brokers. Research commissioned by the Mortgage and Finance Association of Australia (MFAA) showed that out of the $46 billion total increase in mortgage lending recorded by the Australian Bureau of Statistics in the year to June 2015, mortgage brokers originated $30.5 billion.

The proportion borrowers using a mortgage broker is up substantially even from recent times. The total broker market share for the 2015 financial year was 51.3%, up from 48.3% in the previous financial year.

The Government Regulator has recently cracked down on banks with greater than 10% growth investment lending. This has led some banks to change their lending policies to increase interest rates, increase minimum loan to value ratios and capacity to repay loan calculations on investment loans. However, the increase in the use of mortgage brokers uses data from before the Government Regulator induced sweeping changes to investment loans by the major banks.

“I expect that the number of mortgages coming through brokers will increase even further after the changes in investment lending as property investors turned away from their local bank branch will flock to mortgage brokers” said Dr Nigel Abery (Ph.D.) head of Mortgage Broker Oak Laurel.

“We have already seen an increase in inquiries from property investors that have been impacted by the recent lending changes”

“More and more consumers recognize the value a mortgage broker can provide, usually at no extra cost to them” said Dr Abery.

Mortgage brokers provide borrowers the ability to compare many different mortgages without having to do the running around to each lender. However, not all mortgage brokers are the same. It is critical to understand the limitations of each mortgage broker. Looking at their panel of lenders will show potential clients which lenders they can use. Ideally borrowers will use a broker that has access to a large range of lenders so that they have more choices.

Dr Nigel Abery is the head of boutique mortgage broker Oak Laurel that has mortgage brokers in Australia’s major cities Adelaide, Brisbane, Canberra, Melbourne, Perth, Sydney and can assist borrowers wherever they are in Australia or overseas.

For more information about us, please visit http://www.oaklaurel.com.au/

Contact Info:
Name: Xiaodan Tu
Organization: Oak Laurel
Address: 4 Westerfield Drv, Notting Hill, VIC 3168 AU
Phone: 0430129662

Release ID: 89226