NFBD founder celebrates growing market share for mortgage brokers
The fact that mortgage brokers have now reached the highest level of market share for home loans, should be widely celebrated, but it highlights that every Australian deserves access to their expert guidance, says well-known industry figure Dino Pacella.
Pacella (pictured above), the head of third party relationships at commercial finance platform Marketplace Finance and the founder of National Finance Brokers Day, was commenting on the latest broker market share figures released by the MFAA.
Data for the December 2023 quarter, which was released by the MFAA on April 3, show that 71.8% of all new residential homes loans were written by mortgage brokers.
This is a record-breaking result for brokers, beating the previous top figure of 71.7% recorded during the September 2022 quarter.
Pacella said the result showed that Australians recognised the invaluable support provided by mortgage brokers.
“As the founder of National Finance Brokers Day, I am proud to witness this milestone, emphasising the critical need for every Australian to have access to expert guidance when navigating the complex landscape of loans,” Pacella said.
“Amidst economic uncertainties and fluctuating property prices, the role of mortgage brokers transcends mere facilitation; it epitomises a fundamental right for every Australian seeking financial stability and security.”
Pacella said the latest data underscored the trust and confidence clients placed in their brokers, reaffirming the pivotal role they played in shaping the financial landscape of the nation.
“Applying for a loan is not merely a transaction; it is a decision that can significantly impact one's financial trajectory,” he said.
“It is imperative for individuals to have access to unbiased, expert advice to make informed choices tailored to their unique circumstances. Mortgage brokers provide this indispensable service, offering a diverse range of options and guiding clients through the intricacies of loan applications with precision and care.”
Three principles brokers must follow
Pacella said in an economic climate where property prices soared and interest rates remained unpredictable, the need for expert guidance was more pronounced than ever.
He described mortgage brokers as “beacons of stability”, helping borrowers navigate the ever-evolving financial landscape with confidence and clarity.
Pacella said to ensure consumers received the expert advice they deserved, brokers must commit to the following three things:
Thorough assessment
Pacella said mortgage brokers should conduct comprehensive assessments of their clients' financial situations, taking into account factors such as income, expenses, credit history, and future financial goals.
“This thorough evaluation enables brokers to tailor loan recommendations that align with clients' needs and financial capabilities.”
Transparent communication
“Effective communication is paramount in the broker-client relationship,” said Pacella.
Brokers prioritise transparent communication by providing clear explanations of loan options, terms, and potential risks, he said.
“They ensure that clients fully understand the implications of their decisions, empowering them to make informed choices with confidence.”
Ongoing support and education
Pacella said the role of mortgage brokers extended beyond loan origination – they provided ongoing support and education to clients throughout the loan process and beyond.
“Brokers offer guidance on managing repayments, navigating financial challenges, and exploring opportunities for refinancing or restructuring loans as circumstances evolve. By empowering clients with knowledge and support, brokers foster long-term financial resilience and success.”
Pacella said every Australian deserved the right to expert financial advice, irrespective of their background or financial literacy.
“As we celebrate the success of mortgage brokers in facilitating home loans, let us also champion the principle that access to expert guidance is not a privilege but a fundamental right for all Australians,” he said.
National Finance Brokers Day 2024
Pacella is organising the annual National Finance Brokers Day event, which will be held on Aug. 21 at the Sydney Masonic Centre in the CBD.
The theme this year is “Stronger, Together, Unstoppable”, and NFBD will feature a range of speakers and insights as well as industry panel discussions, opportunities for networking and a cocktail reception at the conclusion of the day-long event.
What can the industry do to push broker market share even higher? Comment below.
