Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Broker numbers tipped to fall
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Broker numbers tipped to fall

percentage drop  x percentage drop  x
Vivienne Kelly & Emma Ryan 2 minute read

Aussie’s James Symond believes the number of brokers operating in the Australian market will diminish as the industry matures.

Mr Symond says even though the mortgage industry is growing and there is more business for brokers, some consolidation will occur.

“I think that the number of mortgage brokers in Australia will probably decline – from the MFAA numbers of 12, 13 or 14,000 people – and it might only reshape itself a little bit,” he told The Adviser following Aussie’s number one ranking in the recent Top 25 Brokerages report.

The amount of business available to the remaining 10,000-odd brokers however, will be “much higher”.

In the UK, regulatory reform has resulted in broker numbers dwindling from an estimated 30,000 in 2007 to some 12,000 today. However, broker market share has risen from 50 per cent in 2013 to 70 per cent today.

Advertisement
Advertisement

British brokers, known as intermediaries, have had to upskill and offer additional services and diversify into insurance and advice.

Comparing the situation with Australia, Mr Symond said the mortgage broking industry here is being professionalised and the role of the part-time loan writer is no longer viable.

“You can no longer be a butcher, baker or a candlestick maker and then just say ‘I’m going to be a mortgage broker on the side’. That’s changed,” he said.

“Those days are long gone with the education, with the training, with the professionalism that this industry has gone through. These people are being weeded out and we’ll end up with a stronger industry than ever before.”

Mr Symond said there has never been a better time to be a mortgage broker, adding that Aussie is proud of its recent achievements in the third-party space.

Aussie recently topped the Top 25 Brokerages report, with 960 brokers (up from 889 last year), total loan volumes for FY15 of $16,810,921,000 (up from $14,638,128,000) and a loan book totalling $59,278,601,000 (up from $54,914,749,000 for FY14).

[Related: Looming changes create new opportunities for brokers]

Broker numbers tipped to fall
percentage drop  x
TheAdviser logo
percentage drop  x
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

FROM THE WEB
more from the adviser
handshake 1 850 Asset finance lender acquired for $260m

Equipment finance lender Axsesstoday, which had been placed into ...

StephenMoore850 Brokers encouraged to seize data opportunities

Head of Choice Aggregation Stephen Moore has encouraged brokers t...

megaphone crowd ta Brokers have their say on serviceability changes

Several leading brokers have suggested that APRA’s recent chang...