The chief executive of a major mortgage franchise says he expects the broker market share will continue to grow as the home loan environment becomes increasingly complex.
According to the Mortgage Choice CEO John Flavell
the recent home loan pricing and policy changes being made by Australia’s lenders are making the home loan environment more complex than ever before.
“Ever since the Australian Prudential Regulation Authority mandated in December last year that investment lending growth should not exceed 10% for Australia’s lenders, we have seen a number of banks make some sweeping changes to their policy and pricing in a bid to curb their level of investment lending growth,” he said.
“These changes, which include modifications to servicing criteria, loan to value ratio restrictions and interest rate increases across select home loan products, have made the home loan market more confusing and complex.
“As a result, buyers increasingly need expert advice to help them navigate the home loan maze and find the right product for their needs – which is where mortgage brokers come in.
Earlier this week, the CEO of Westpac, Brian Hartzer was reported to have said mortgage brokers were likely to come under increased scrutiny of financial regulators in the same way that financial advisers had. However, Flavell has downplayed those comments.
“The reality is that the mortgage broking industry has gone through significant change over the years with the introduction of National Consumer Credit Protection legislation. All brokers have a very clear obligation to ensure that customers can service their debt without substantial hardship,” he said.
“Today, brokers are well educated, mortgage professionals who are well placed to deliver customers with sound home loan advice, guidance and importantly choice.”