What’s in store for the mortgage brokering industry?
Have you been looking for a fresh career opportunity, or to simply explore something new in a growth area? Mortgage brokering offers one way forward for a lot of Australians, giving you the chance to help people move up the property ladder and grow your own business.
But of course, you wouldn’t want to move into an industry if it was on its way out. So where is the brokering industry headed in the next few years?
An industry matures
The IBISWorld report ‘Mortgage Brokers in Australia’ looks at the industry over the past five years, and indicates where it might head between now and 2020. Annualised growth in the sector is expected to slow down to 2.1 per cent in the next five years, after reaching 4.1 per cent over 2010-2015.
“IBISWorld expects that the industry has already entered the mature stage of its life cycle,” the report reads. This suggest that while the growth spurt has already occurred, it is now in a stable position from which anyone can enter and take part in a thriving sector.
There’s room for more growth spurts, though
One thing that can cause sudden growth in the brokering industry is a cash rate cut. IBISWorld notes that when the Reserve Bank of Australia cut the cash rate to 2.5 per cent in 2013-2014, industry revenue went up by an incredible 21 per cent.
It’s too soon to tell if the same occurred when the RBA cut the rate to 2 per cent, but it’s sure to entice many buyers to secure a new home loan. A number of industry commentators think we’re going to see yet another cut in the next few months as well. Maybe there’s even more activity in store for brokers.
Regardless, it’s clearly an industry with great growth potential. Have you thought about getting involved?
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!