The mortgage broking Livelihood has boomed in Australia during the previous fifteen years. From humble beginnings the sector has increased at a rate of knots over the last ten years or more to a stage where there’s currently over ten million brokers practicing throughout the nation. Despite this comparatively large amount Australia has a population of just twenty million people the function of a mortgage agent is widely misunderstood. The mortgage market in the land Down Under has been dominated by the Four Pillars banking system for decades. The four banks contained in the system are Commonwealth Bank, ANZ, National Australia Bank, and Westpac. Though the Four Pillars system has just been formally set up since the 1990s the exact same four banks have shared the vast majority of home loans issued in Australia for several years before this.
Deregulation of the Banking system opened the door for other financial institutions to provide mortgage products in Australia. While some of the creditors, namely smaller banks and building societies, already had an established network of branches by which they could sell their house loan products, other did not. The independent mortgage brokers Brisbane profession emerged to fill the gap and become the sales force for non-bank lenders that did not have a branch network accessible to them. The role of mortgage Agents in Australia is therefore to provide home loan products from an assortment of lenders who would otherwise not have the ability to promote their goods to the general public. Unlike large banks, like the Four Pillars banks, agents can offer their customers comparable home loans from various lenders, thereby helping to make certain that their customers apply for the most appropriate product for their personal situation. Banks on the other hand, are limited to offering their customers a little assortment of mortgage products from their own variety.
Independent mortgage Agents often operate under the umbrella of an aggregator or a master franchise. Franchising is popular in Australia and the mortgage market is awash with franchises which also function as aggregators. This business structure guarantees that the franchisees belong to a group that will have access to a broader selection of lenders than a single agent working alone could handle. Aggregators usually also provide training and support to their franchisees, helping to ensure they stay professional and educated throughout their careers. Mortgage brokers in Australia are also required to join either one of two professional bodies. They would be the MFAA and the FBAA. Both of these bodies help to keep Professionalism within the industry by enforcing a code of behavior and taking disciplinary action where required. The title of the game for these bodies is to protect the general public by helping to weed out any agents that provide poor advice For the sake of earning commissions.