The MFAA has restated its warning that there is a ‘growing shortage’ of young people entering the mortgage broking profession and says it's aiming to solve the issue.
Research into the MFAA’s membership shows that the proportion of its membership under the age of 30 years has almost halved from 11% to 6% over the last two years, with only 19% of new members in the association under 30 years of age.
Meanwhile, the data shows that the percentage of mortgage and finance brokers over 50 years of age has grown from 27% of 37%.
MFAA CEO, Phil Naylor, says the spokes group is highly concerned about the low levels of young people entering the profession and are making representations to the Federal Government for the establishment of a traineeship program suited to a contractor model, which mostly applies in this sector.
“The MFAA is now participating in university careers days and the recent National Skills Expos in Brisbane and Adelaide, and in other cities later this year, to generate youth interest in joining the industry. The MFAA is also consulting with State Training Services, the Department of Education and various schools’ career counsellors to investigate the possibility of establishing a structured in-school and school leaver program to provide a source of recruitment for our industry,” says Naylor.
“From what we are hearing at those careers days and expos, many young people are interested in joining the industry but are unsure as to how to get into broking without capital, as they are required to bring in deals before [they] start earning income.”
“We are aware of several members already taking on new entrants as employees until they can establish themselves and there are some businesses that only have employee brokers. But the issue for most smaller operators is the lack of funding in their businesses to be able to afford staff and this is where a traineeship program will assist.”
Naylor says the broking channel now delivers around 45% of mortgages in Australia, with the sector providing home loans worth more than $100 billion this year alone.
“This is a profession with strong growth prospects and it is up to all players and the MFAA to facilitate it as a career option for smart young people in both city and country areas.”