The mortgage broking industry in Australia has been predicted to grow substantially over the next few years. With brokers settling close to 60% of all home loans in Australia, it’s clear to Mark Bouris that brokers “are extraordinarily important” to Australians and the economy.
Bouris was recently joined on the Broker Room Podcast by the Managing Director of the Finance Brokers Association of Australia (FBAA), Peter White, to discuss what the future looks like for mortgage brokers and the importance of having an industry representative for brokers in 2022.
How do peak bodies like the FBAA support brokers?
To obtain your brokerage licence, you will need to become a member of one of the two industry bodies:
- MFAA (Mortgage and Finance Association of Australia)
- FBAA (Finance Brokers Association of Australia)
Both are fantastic organisations that provide training, support and advocacy for brokers across Australia. Crucially, these peak bodies continuously monitor legislation and regulatory changes in the mortgage industry so that they can be a strong voice to industry regulators, politicians and decision-makers.
How to maximise your career as a broker
Peter, who was awarded as a Member of the Order of Australia for his significant service to the finance sector and the community, believes one of the keys to success in the broking industry is finding a “strong support network.”
“The mentoring piece to me is a little bit understated. Finding that strong person who you can rely on to cut it to you the right way, but also to support you to achieve your goals is incredibly important. It shapes who you become.”
“It has to be someone who is very strong and can really add value to your journey, and not just someone who is going to help you get a loan through because so many things happen on this road that you travel from early on in your career to where you wind up 20 years or more later, that you don’t expect and that you won’t necessarily know how to handle.”
What does the mortgage broking industry hold for the future?
Both Mark and Peter are extremely optimistic about the future of the industry.
Peter said, “I actually think the future is looking really good, there will always be regulatory challenges, but this is what industry associations do, we take the stress that happens through regulation and politics to try and piece that away, so you don’t have to worry about it. That won’t change too much, there is more regulation to come, but we’ll deal with that when it happens.”
“But for somebody practising as a broker, today we settle around the high 50’s in terms of percentage of home loans settled in this country. I see that going up to about 70%. I predict about 70% of all loans will be written by brokers. You can even go further than that as technology develops and drives us further forward.”
“So, I see quite an exciting journey ahead in the coming ten years, and I think you want to get on this bandwagon.”
Bouris believes that regulation in the mortgage industry is a compliment to brokers, as it emphasises the important role mortgage brokers have in Australia’s economy.
“If 50% or 70% of all loans originate through a broker and not through a bank, that means we are extraordinarily important to the way this economy rolls, and therefore we would expect to be regulated because we don’t want anything to go wrong. And therefore, as a broker, see yourself as having high status.”
“That in itself paves the way for you to be involved in an industry that you can be proud of, an industry that you can hold your head high, an industry that, because we’re delivering so much, we can get paid well for, and it’s actually an industry you can have a career in.”
“Our representation, the MFAA and FBAA, they’re the groups that go and fight for us, whether it’s talking to the prime minister, the treasurer or the regulatory environments, that’s why we need them. And again, that’s why our status as brokers has been elevated, because we have someone there, fighting for us.”
“Don’t be looking at it saying ‘I’m sick of all the regulatory stuff’…it happens! You want to have status? You’re going to be regulated. End of story.”
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