There are various conditions that mortgage brokers operate in, and it’s important they are aware of each one of them.
The Mortgage Brokers in Australia report by IBISWorld explores these areas and what they mean for those in the business. Let’s delve into a few of these important factors that shape the mortgage brokering landscape.
Technology
The level of technological change within the industry isn’t huge in relativity to those found in others. That’s not to say there aren’t shifts in this area occurring. Like almost everything these days, there is an increasing need for mortgage broker services to be accessible via the internet.
According to the Australian Bureau of Statistics, there were 12.8 million households with internet subscriptions by June 2015, revealing it’s wide-scale prominence and importance.
However, as mentioned by the IBISWorld report, the amount of business being brought in this way remains moderately low. After all, taking out a mortgage is a huge financial decision, and it’s one that people will want to make with the assistance of a person rather than a computer screen. For brokers, being able to go out and meet with clients one-and-one continues to become an imperative function.
At the end of the day, people still love dealing with people. By being able to wear so many hats at once, mortgage brokers can handle many parts of the brokering process on their own.
Capital Intensity
The mortgage broker industry is one that has a low level of capital intensity. This means that it’s not a sector that requires a large labour force. In order to become a mortgage broker, these professionals must first receive their accreditation, which demands not only a high level of education and mental aptitude but great administrative and customer service skills as well.
By being able to wear so many hats at once, mortgage brokers can handle multiple parts of the brokering process on their own.
Revenue volatility
As mentioned by IBISWorld, the industry is operating with a level of revenue volatility. This means that the amount of money being brought in by mortgage brokers is subject to rising and falling quickly over a short amount of time.
One main reason for this is that performance is inevitably tied with the state of the real estate market. With this in mind, CoreLogic RP Data reveals that by the end of November 2015, the value of Australian property reached $6.3 trillion, showing unprecedented growth. No doubt, mortgage brokers have ridden off the back of this success.
Get in touch with Redrock to see how you can become a mortgage broker. We offer everything you need to get started in this exciting industry.
