The role of mortgage broker in Australia
The profession of trading of mortgages has soared in Australia over the past fifteen years. From humble beginnings, the industry grew at a rate of knots in the last decade or more to the point where it is currently more than ten thousand runners practice across the country.
Despite this relatively large number – Australia has a population of only twenty million people – the role of mortgage brokers is largely unknown. The home loan market in the Land Down Under has been dominated by industry four pillars of the banking system in recent decades. The four banks included in the scheme is the Commonwealth Bank, ANZ, National Australia Bank and Westpac. Although the four pillars of the system has only been formally established since the early 1990, the same four banks have financed the bulk of mortgage loans issued in Australia for many years before this.
Deregulation the banking system has opened the door to other financial institutions to offer mortgage products in Australia. If any of these lenders, that is, smaller banks and construction companies, a network or through branches established so they could sell their home loan products, some not. The profession of broker independent mortgage emerged to fill this void and become the sales force to non-bank lenders that do not have a branch network at your disposal.
The role of mortgage brokers in Australia is to offer loan products in the home to a variety of lenders who would otherwise not be able to market their products to the public in general. Unlike larger banks, as the four pillar banks, brokers can offer their customers comparable loans of different lenders, helping to ensure that customers apply the product that best suits your personal situation. Banks, on the other hand, are limited to offer their customers a small selection of products for home loan on their own line.
Independent Mortgage brokers often operate under the auspices of an aggregator or franchise lover. The franchise is very popular in Australia and the mortgage industry is inundated with franchises that also act as aggregators. This structure ensures that franchisees Company belonging to a group that has access to a wide range of individual lenders agent working alone could handle. General aggregators also provide training and support to its franchisees, helping to ensure they are professionally and skills throughout their careers.
Mortgage brokers in Australia are also required to join one of two professional bodies. They are the MFAA and FBAA. Both organizations contribute to maintaining professionalism in the industry by implementing a code of conduct and disciplinary action where appropriate. The name of the game for these agencies is to protect the public, helping to eliminate the intermediaries offering poor advice, for costs savings.
Following the credit crisis, the Australian government has decreed that the national legislation for the financial services industry is necessary. Previously, each state is responsible for this regulation. National regulatory regime will impact on mortgage brokers and help maintain the integrity of the industry in touch, and it will make it even harder for unscrupulous brokers to work.
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