Australia’s Mortgage Broker Sector To Keep Expanding In 2013

The Mortgage Finance Association of Australia (MFAA) expects the country’s mortgage broker sector to witness impressive growth this year, with its share of the lending market seen growing to above 40%, it said on its website.

Recently, financial expert Deloitte published its forecast for the development of the country’s mortgage market, pegging the overall home lending growth rate at 5% for 2013 compared to the previous year. However, according to MFAA’s CEO, Phill Naylor, the market will perform better than expected as the broking industry has the potential to foster its market position thanks to increased consumer demand for professional credit advice.

The association shares Delloitte’s stance that this year, the mortgage market will see fierce competition and margin pressure, which will force lenders to adopt a pro-active approach as to book management and to look for efficiencies by making use of the broker segment. The surge in demand for broker services will also be dictated by the expected increase in mobile apps and social media use, which will help consumers to more easily find a broker or lender offering mortgage credits. Technology will also assist brokers in taking ownership of the customer earlier, the chief executive said.

The association also projects a rise in the number of people occupied in the mortgage broking industry this year. The volume of brokered mortgage loans is forecast to hit $100 billion in 2013, MFAA added.