The success of your mortgage broker career depends largely on your dedication, and the help and expert training you get along the way. However, there is one factor that can heavily influence your efforts, and unfortunately you can do very little to change it – the Australian property market.
What you can do is fully understand the market so you can best advise your clients, and tailor your business to suit its intricacies.
Housing finance commitments to stay flat into 2018
During September alone, banks and mortgage brokers lent over $33 billion to Australians buying residential property, Australian Bureau of Statistics data shows. This figure is made up of roughly $21 billion for owner occupied housing and $12.1 billion for investment housing.
The total number of dwelling commitments has rapidly increased by 2,000 since March 2017, while the total value of homes bought actually decreased slightly. This indicates that Australians are buying more homes of a lesser value, perhaps thanks to the rise of large scale apartment developments.
That’s why in 2018, targeting a high volume of lower value loans may be a smart way to crack the market and become a mortgage broker. Before you start thinking strategy, however, get the help you need in the form a professional mentor, training and comprehensive technical support from Redrock.
Improving housing affordability – an opportunity for mortgage brokers
Home building is accelerating at an alarming pace here in Australia. In the five years to 2017 there were 204,000 homes built around the country, and in the decade prior to that we built less than 160,000, QBE data shows.
Generally speaking, more homes means better housing affordability, a fact that will become particularly evident over 2018. Over the next three years median house prices are expected to fall in both Sydney and Darwin. Prices in Melbourne, on the other hand, are forecasted to increase by only 10.2 per cent by 2020.
Other capital cities are also following suit, with most expecting price increases of less than 11 per cent over the same period. As house price rises slow, wage growth will catch up and more Australians will be able to buy a home or investment.
This means more potential clients for your fledgling mortgage broking business, and more commission in your pocket. Get in touch with Redrock today to find out more about how we can help you start a mortgage broker career in 2018.
There’s no better time than now.