Overview

Penny for your thoughts: Low home loan rates are boosting demand for industry services

IBISWorld’s Mortgage Brokers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Declining residential housing loan rates have boosted industry revenue growth
  • More borrowers have been recognising the need for broker services in navigating mortgage options
  • A projected rise in housing loan rates may deter property investors from entering the market

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    Industry Analysis & Industry Trends

    Buying a home is often one of the most important financial decisions an individual will make in their lifetime, and it usually requires a substantial loan. Therefore, many borrowers 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...

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    Industry Report - Industry Locations Chapter

    The number of brokers is most concentrated in areas where there is a high level of mortgage activity, which are regions with a high population and employment, such as New South Wales, Queensland and Victoria. Mortgage brokers are also located close to major lenders' headquarters, such as Sydney, for ease of access to information and processing the mortgage applications. However, with the advancement in technology, many mortgage brokers conduct their businesses via the internet.

    According to ABS Housing Finance statistics, 30.6% of total new housing loan commitments for owner occupiers were located in the state of New South Wales, in September 2016. Victoria and Queensland are second and third in terms of housing loan commitments, accounting for an estimated 26.9% and 20.5% r..

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    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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    Industry Products

    What is the Mortgage Brokers Industry?

    Mortgage brokers in Australia generally act on behalf of lenders, primarily aiding borrowers in sourcing and applying for mortgage finance (for both residential and investment real estate purposes), and in refinancing 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Table: Mortgage Brokers Industry Revenue Outlook

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

  • Products & Markets
    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-homebuyers
  • Commercial borrowers
  • Other markets
  • Chart: Major Market Segmentation for the Mortgage Brokers Industry

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

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

  • Industry Globalization
    Major Companies
    Australian Finance Group LtdCommonwealth Bank of AustraliaMortgage Choice Limited
  • Table: Australian Finance Group Ltd - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Mortgage Choice Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Mortgage Brokers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Mortgage Originator
  • The bank or non-banking institution that is the original mortgage lender.
  • 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.
  • Why buy this report?

    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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