James Symond says 70% by 2020 and with property investors and ambitious lenders dependent on brokers it’s far from impossible
James Symond says 70% by 2020 and with property investors and ambitious lenders dependent on brokers it’s far from impossible
Brokers’ market share could rise to 70% by 2020, Aussie CEO James Symond has predicted.
Symond made his claim after MFAA figures showed brokers settled 55.7% of all residential mortgages during the September quarter, an increase on 53.6% in the same quarter last year, and a record high.
Symond said “there is no doubt momentum has built up in the industry and brokers are now the preferred option for borrowers looking to commit to what will arguably be the largest investment in their lives.
“Aussie is feeding into that growth with plans to lift our number of stores from 215 to 300 across Australia, with a further 300 brokers to be added, over the next three years”
Broking as a whole is growing quickly, with over 500 brokers joining in six months from October 2016-March 2017, according to the MFAA, although lending has not kept up.
Thank investors
Broker market share has been boosted by property investors, who are now almost entirely reliant on the channel.
83% of property investors plan to finance their loan through a broker, a survey by the Property Investment Professionals of Australia suggests. That represents a major increase since 2016, where the figure was 71%.
Although lending changes have plagued property investors since 2015, this year saw changes to interest-only lending – and in many cases sharp rate rises – which forced investors to rethink their finances.
Increasingly, brokers are being seen as experts – over half of investors would seek advice on property investment through a broker.
Ask the banks
Non-major banks and non-banks have traditionally depended on the third party channel. However, a number of major banks also believe brokers will grow.
“We’ve always been a supporter of the broker channel because we know that customers really like it,” ANZ CEO Shayne Elliot told Australian Broker magazine, on the publication of the bank’s full-year results in October. “Look, the customer’s preference for brokers has just increased over time, every year after year. If anything, I see that continuing to be the case.”
NAB’s results saw a huge increase in business through brokers, with broker-originated loans rising from $88.2bn to $98.5bn. The increase follows well-publicised investment in the broker channel in recent years, including the appointment of ‘banker-brokers’ to improve broker client’s experience in branches and avoid channel conflict.
Brokers’ market share could rise to 70% by 2020, Aussie CEO James Symond has predicted.
Symond made his claim after MFAA figures showed brokers settled 55.7% of all residential mortgages during the September quarter, an increase on 53.6% in the same quarter last year, and a record high.
Symond said “there is no doubt momentum has built up in the industry and brokers are now the preferred option for borrowers looking to commit to what will arguably be the largest investment in their lives.
“Aussie is feeding into that growth with plans to lift our number of stores from 215 to 300 across Australia, with a further 300 brokers to be added, over the next three years”
Broking as a whole is growing quickly, with over 500 brokers joining in six months from October 2016-March 2017, according to the MFAA, although lending has not kept up.
Thank investors
Broker market share has been boosted by property investors, who are now almost entirely reliant on the channel.
83% of property investors plan to finance their loan through a broker, a survey by the Property Investment Professionals of Australia suggests. That represents a major increase since 2016, where the figure was 71%.
Although lending changes have plagued property investors since 2015, this year saw changes to interest-only lending – and in many cases sharp rate rises – which forced investors to rethink their finances.
Increasingly, brokers are being seen as experts – over half of investors would seek advice on property investment through a broker.
Ask the banks
Non-major banks and non-banks have traditionally depended on the third party channel. However, a number of major banks also believe brokers will grow.
“We’ve always been a supporter of the broker channel because we know that customers really like it,” ANZ CEO Shayne Elliot told Australian Broker magazine, on the publication of the bank’s full-year results in October. “Look, the customer’s preference for brokers has just increased over time, every year after year. If anything, I see that continuing to be the case.”
NAB’s results saw a huge increase in business through brokers, with broker-originated loans rising from $88.2bn to $98.5bn. The increase follows well-publicised investment in the broker channel in recent years, including the appointment of ‘banker-brokers’ to improve broker client’s experience in branches and avoid channel conflict.
