More than 80% of business through brokers goes to the majors – something this broker-run committee wants to change
“We recognise we need to do more,” says GM of retail broker
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According to Dino Pacella, the percentage of mortgages originated through the broker channel will hit 70% by the end of 2025 due to the changes that have taken place throughout COVID-19.
The founder of National Finance Brokers Day told MPA that despite the prevalence of tech disruptors in the mortgage market, the future of broking was indeed strong.
“Clients are finding it easier, quicker and more convenient to be dealing with a broker than ever before,” he said. “Even with the digital changes within the bank’s direct channel, people don’t have the comfort and trust level that they do when dealing with a broker via digital means.”
Throughout COVID-19, going into a bank branch became a safety concern – as did any type of face-to-face interaction. Brokers remained open for business and spent countless hours helping their clients over the phone and through Zoom when many lenders were swamped with enquiries. This did much to cement the value of brokers during the first few months of pandemic-induced uncertainty. This value and the relationships it helped to form have both endured well into the country’s economic recovery; brokers now working at the frontline of a heated property market.
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Despite his positive outlook, Pacella said it was important not to become complacent against the relatively new background of best interests duty.
“Brokers should ensure they are fulfilling their compliance requirements with ease,” he said. “Make sure you have the right tools available and, importantly, ensure they are being utilised to the maximum.
“If you take away the so-called perception of the “boring but important paperwork” aspect of being a broker, the growth of the business can then flourish.”
Pacella has announced this year’s National Finance Brokers Day will take place on Wednesday, August 18, with a theme of Broker Resilience.
Kate McIntyre is an online writer for Mortgage Professional Australia. She has a wealth of experience as a storyteller and journalist for a range of leading media outlets, particularly in real estate, property investing and finance. She loves uncovering the heart behind every story and aims to inspire others through the artful simplicity of well-written words.
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