Abstract
Introduction
The mortgage broker channel has assumed an pivotal role in the distribution of
residential mortgages in Australia. However, the global financial crisis has
led some lenders to exit the market and others to cut back on the broker
channel. This report looks at how the mortgage broker channel is changing and
focuses on issues and challenges faced by brokers.
Scope of this research
- Uses Datamonitor' s Australian Mortgage Broker Survey 2009 to understand
brokers' thoughts of various mortgage issues and challenges.
- Quantifies the size of the broker channel in the Australian mortgage
market.
- Uses Datamonitor' s Australian Mortgage Broker Survey to understand how
brokers feel about different aspects of their interaction with lenders.
- Analyzes current trends in the broker channel.
Research and analysis highlights
The global credit crisis has adversely affected all participants in the
mortgage industry. Prospective mortgagors are more wary about committing to a
mortgage and lenders are finding it harder to source funds. Total housing
lending commitments have fallen by almost 15% in the last year, from A$264
billion in 2007 to A$225 billion in 2008.
In 2009, an impressive 70% of mortgage brokers mentioned CBA as one of their
top three lenders. The resurging dominance of the major banks in the mortgage
market can be seen for the other banks as well. Westpac was mentioned by 19%
of respondents as a top three lender in 2006, a figure which had grown to 46%
by 2009.
It is Datamonitor' s view that regulations will have a relatively minor impact
on the mortgage broker industry, for several reasons. Firstly, these changes
have been anticipated for several years, and brokers have had time to prepare
for them. Secondly, most brokers already comply with most of the requirements
of the proposed regulations.
Key reasons to purchase this research
- Track important broker metrics such as loan size, refinancing proportion
and product set.
- Understand the impact of the global financial crisis on the mortgage
broker channel, and the strategies that have evolved to mitigate this threat.
- Perfect your strategy with Datamonitor' s analysis, recommendations and
forecasts.
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