Lending support: Low interest rates and rising house prices have boosted revenue for brokers

Buying a home is one of the most important financial decisions many individuals will make in their lifetime, and it usually requires a substantial loan. Many borrowers therefore consult experts to help them navigate the complex range of loan products available. The Mortgage Brokers industry is relatively new, having only existed since the early 1990s. Since then, mortgage brokers have come to be seen as providers of comprehensive, convenient and unbiased advice to clients. As they represent a panel of lenders, they can offer customers a range of products and tailor mortgages to specific needs...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
4.2%
Forecast Growth 19-24
Profit
Employment
18,073
Businesses
7,120

Industry Threats & Opportunities

  • Declining residential housing loan rates have boosted industry revenue growth
  • More borrowers have recognised the benefit of broker services in navigating mortgage options
  • A projected rise in housing loan rates may deter property investors from entering the market
  • Industry Report - Industry SWOT Analysis Chapter

    The Mortgage Brokers industry is in the growth phase of its economic life cycle. Industry value added (IVA), which measures an industry's contribution to the overall economy, is forecast to increase at an annualised 3.5% over the 10 years through 2023-24. This represents an outperformance of real GDP, which is expected to rise at an annualised 2.7% over the same period.An increasing number of large players are expected to emerge in this industry. The big banks are already starting to make their presence felt by integrating the broking function into their operations. This factor is causing competition to rise, which is subsequently eroding profitability. The...purchase to read more.

    Additional Insights for the Mortgage Brokers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mortgage Brokers Industry are

  • Having links with suppliers
  • Experienced work force
  • Ability to franchise operations
  • IBISWorld analysts also discuss how external factors such as Residential housing loan rates and Real household disposable income in the Mortgage Brokers industry impact industry performance..

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    What's in this report

    What is the Mortgage Brokers Industry?

    Mortgage brokers in Australia generally act on behalf of lenders, primarily helping borrowers source and apply for mortgage finance (for both residential and investment real estate purposes), and refinance existing mortgages. Brokers do not usually charge mortgagees any fee for their services. They receive origination and trailing commissions on originated funds directly from lenders.

    Industry Products
  • Residential owner-occupier loans
  • Residential owner-occupier refinancing loans
  • Residential investment loans
  • Commercial loans
  • Personal loans
  • Other products
  • Industry Activities
  • Brokering housing loans
  • Assisting borrowers to choose products provided by lenders
  • Assisting borrowers in the loan application process
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Residential housing loan rates
  • Real household disposable income
  • Number of households
  • Residential housing prices

  • Current Performance
  • Rates, confidence

    and prices

  • Borrowers seeking brokers
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry threats
  • Regulatory hurdles
  • Competition
  • Table: Mortgage Brokers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mortgage Brokers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Building Societies
  • Credit Unions
  • Foreign Banks
  • National and Regional Commercial Banks

  • Products & Services
  • Residential investment loans
  • Residential owner-occupier loans
  • Residential owner-occupier refinancing loans
  • Commercial loans
  • Personal loans
  • Other products
  • Chart: Mortgage Brokers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Investors
  • Owner-occupiers
  • First-home buyers
  • Commercial borrowers
  • Other markets
  • Chart: Major Market Segmentation for the Mortgage Brokers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Mortgage Brokers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mortgage Brokers Industry

  • Industry Globalization
    Australian Finance Group Ltd, Commonwealth Bank of Australia, Mortgage Choice Limited,
  • Table: Australian Finance Group Ltd - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Mortgage Choice Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mortgage Brokers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mortgage Brokers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Loan-To-Value Ratio
  • Ratio of the mortgage banks lend to buyers as a percentage of the total appraised value of the asset
  • Mortgage Aggregator
  • An intermediary between the broker and lender who, by way of aggregating large volumes of mortgages, can negotiate better commission or loan terms for the broker.
  • Regulatory Guide 146 (Rg146)
  • A regulation issued and regulated by ASIC that relates to the minimum training requirements needed to offer advice on financial products.
  • Trailing Commission
  • A fee paid to a broker by the lending bank, usually annually, which declines as the balance outstanding on an issued loan is reduced.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mortgage Brokers market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mortgage Brokers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mortgage Brokers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mortgage Brokers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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