While we would all like to have a million dollars, the reality is many people are not as well off as they want to be. In fact, with CoreLogic RP Data recording Sydney’s median dwelling value at nearly a million dollars, even those who are in solid financial standing might find it hard to take out a home loan.
This has been exemplified in the latest data from the Australian Financial Security Authority (AFSA), which highlights the difficulties people are having with their money. But could people help if they become a mortgage broker?
Seeing red
It is incredibly important that people are able to handle their borrowing in the long term.
According to AFSA, there was a slight increase in personal insolvencies across the March quarter of 2016. While only 2 per cent, it shows that more people are failing to keep a handle on their debts. Considering that Australia is currently at record levels of household debt, it is incredibly important that people are able to handle their borrowing in the long term.
This is where becoming a mortgage broker might put you in a position to help a great deal of people.
How becoming a mortgage broker helps
In its dissection of the mortgage broker industry last year, IBISWorld highlighted the role that they can play in helping consumers overcome a fairly complex financial decision. For starters, they are not just gatekeepers of a wide range of products – mortgage brokers can educate consumers on the benefits and drawbacks of each, helping them to better select a home loan.
The flexibility of services they offer also helps people seeking advice with their finances, especially as competition heightens – IBISWorld noted that mortgage brokers will often go above and beyond to visit people outside work hours or at their own homes.
Finding the focus
Education is the key to successfully managing finances.
The AFSA data shows that the highest concentrations of people experiencing insolvency or debtor arrangements were in Queensland, New South Wales and Victoria. With IBISWorld recording high concentrations of mortgage brokers in the states as well, the industry is well poised to help people out.
Education is the key to successfully managing finances, and anyone that becomes a mortgage broker enters a role where they can impart the right knowledge to consumers in need. It could be about securing a mortgage with bad credit, managing an SMSF or simply finding a traditional home loan – regardless, it’s an important role to play.
To find out more about being a mortgage broker, make sure to get in touch with us here at Redrock.
