The Mortgage and Finance Association of Australia (MFAA) has released the twelfth edition of its Industry Intelligence Service Report, a detailed analysis of the broker channel and, more importantly, how much brokers are paid for mortgages on average.
Key data showed that pay was up 14.55% compared to the previous year’s data, and the average broker took home $ 161,894. The number of active mortgage brokers also grew, by 3%, making the salary increase even more remarkable.
The data was collected between October 1, 2020 and March 31, 2021, when the housing boom had started but was not yet in full swing, so there is a possibility that it has grown even further.
The report also details the total deals the broker channel delivered in the six-month period covered, topping $ 122.81 billion in residential home loans, an increase of 24.4% year-on-year and the highest ever recorded by the MFAA. Industry Intelligence Service Report, which started in 2015.
Report reveals how much the average mortgage broker is paid
“As evidenced in the report, mortgage brokers were able to help a record number of clients take advantage of historically low interest rates and market strength and, in doing so, achieved some of their most positive results to date,” he said. the CEO of MFAA. Mike felton.
“The broker channel paid off $ 122.81 billion in residential home loans for the six-month period, the highest value on record for any six-month period since the MFAA began reporting in 2015, an increase of 24.4%. year-on-year “.
“This result was indicative of strong performance across the board for the nation’s mortgage brokers, with upfront fees increasing a significant 19.93% year-over-year, reaching $ 94,096 per broker over the period.”
“This helped achieve a healthy national average combined compensation per broker of $ 161,894 per year, or a 14.55% year-over-year increase, despite a 3.5% increase in the number of brokers in the industry.”
Mortgage Brokers Salary Rises, But Number of Brokers Falls
Most worryingly, the percentage of women in the mortgage brokerage industry fell year over year, to the lowest level ever recorded, 25.8%. The total number was largely stable, but with the broader growth of the industry, the percentage declined, with men outnumbering women by more than two to one in terms of new people joining the industry. .
“Disappointingly, however, the proportion of female runners has declined to the lowest level observed, even as the total population of female runners rebounded and increased from one period to the next,” Felton said.
“After boosting market share by providing much-needed liquidity to the mortgage lending industry during the 2020 recession, the period from October 2020 to March 2021 has seen the downward trend in the share of market of the main banks with a decrease of 7.6 percentage points from 51.7% to 44.1% “.
“Overall, October 2020 to March 2021 was a positive period for the mortgage brokerage industry, as brokers responded to customer demand driven by historically low interest rates, government support, and a housing market. booming national “.