The Brokers Role

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The mortgage broker plays a critical role in the lending industry with over 60% of mortgage loans introduced by brokers. Increased consumer access to credit and a broader selection of lenders ensure the industry’s competitiveness. Brokers have filled a significant gap left by lender branch closures in rural and regional areas. (The latest data released from the Australian Prudential Regulation Authority (APRA) has revealed the number of banking services available across the country was falling in the financial year ended June 2022. The data revealed 309 bank branches were closed nationally in the last financial year alone, with 96 branches closed in NSW, 57 closed in Queensland, and 88 closed in Victoria.)

Brokers play a crucial role in helping vulnerable consumers access to finance to improve their overall financial position by navigating the complexities of the home loan market. Brokers who have independent information about consumers are better equipped to identify any vulnerabilities that the consumer has and tailor their assistance to their situation and needs. Through the broker channel, both customer experience and outcomes will be enhanced. Consumers are assisted by brokers in selecting the right product for their financial circumstances, needs, and objectives. As a result, consumers are guided through the loan application process, reducing time, stress, and administrative burdens. Finance industry brokers play a valuable role. In terms of driving competition and seeking better outcomes for consumers, open banking/CDR and the mortgage broking channel are intrinsically linked. Brokers are your ‘trusted advisors’.

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