Finance Broking Industry

The Finance Broking Industry is a relatively young industry. 15 years ago, the mortgage broking industry barely existed, and today accounts for over 40% of loans written in the home loan market. Today there is no reason for someone looking for a home loan to approach a bank directly when he or she can have a Mortgage Broker do so on their behalf. The benefits to a home loan customer are obvious. At no cost to the customer, the effort required to find the right Home Loan is reduced, they will be recommended a product by a professional with industry experience and knowledge and they will have access to every home loan product in the market rather than just one or two lenders’ products. There are also home loan products only available to customers via brokers which are often the best value home loans in the market.

The Commercial Finance Broking industry has taken a lot longer to mature than the Mortgage Broking industry, however is heading in the same direction. A key reason for the Commercial Finance Broking market taking longer to mature is the lack of Finance Brokers with Commercial Finance experience and knowledge. As with sourcing a Home Loan however, it makes sense to seek the assistance of a Broker when looking for Commercial Finance (perhaps even more so). With Commercial Finance being much more complex than Mortgage Finance, it makes sense to engage a Broker who knows the Commercial Finance Market, has experience in considering Commercial Finance offers and has existing relationships with the commercial lenders.