News that mortgage brokers are originating the majority of home loans for a major bank has been welcomed by the Finance Brokers Association of Australia.
In its full-year results, released last week, ANZ bank revealed that brokers originated 56 per cent of its mortgages, or more than 99,000 loans, in the year ending September 2017.
“We’re very pleased to see those numbers, but we’re not overly surprised,” FBAA executive director Peter White said. “It’s further proof of the value that borrowers are putting in brokers.”
Mr White said that it has been clear for a long time that mortgage brokers are playing a more prominent role in the home loan sector as mortgages written by brokers have been increasing across the board.
“On average, brokers account for more than half of all home loans being generated by banks, and that’s because they are across all relevant options available to borrowers, not just the products of one bank,” Mr White said.
“One of the main jobs of a broker is to make sure borrowers sign up for loans that are not unsuitable for their financial circumstances and to maintain that [that] remains the case.”
Mr White pointed to the latest sentiment survey by Property Investment Professionals of Australia (PIPA) which showed that 73 per cent of investors have used a broker.
“That number is expected to increase in the next 12 months, and I think it’s a reflection of the level of trust the market has in brokers,” the executive director said.