Trends in Mortgage Industry

Top 4 Trends in the Mortgage Industry You Need to Know About

The mortgage industry has entered a digital transition phase. According to experts, two fundamental causes have hastened this technological shift: the necessity to solve the difficulties posed by the pandemic and the growth in tech-savvy home buyers. Here are some significant trends that, according to experts, will define the present and future of the mortgage brokerage industry.

1.  First-Time Home Buyers Are More Prepared

While this is not new, a limited supply of properties combined with Australia’s average property price continuing to climb faster than ever before will leave many potential buyers disappointed and disheartened.

On the other hand, many first home buyers complete their study ahead of time and arrive completely prepared to begin the home loan application process because of the tight market.

2. The Push for Digital Will Continue for Real Estate

When COVID forced the real estate sector to become digital, it fueled a similar movement in mortgage financing. Still, there are procedures in the mortgage business that are decades old, relying mainly on the notion that it’s “exactly the way it’s always been done.” In the end, it all comes down to customer experience, and the fact is that advanced technology platforms should improve that experience and outcome.

Homebuyers want to apply for and qualify for a mortgage through a seamless online application process. It’s made possible thanks to the plethora of proptech and fintech apps available. The consumer, as in so most businesses, is driving the demand for innovation. Mortgage services, in turn, must keep up with the trends by using technology and improving efficiency.

For example in real estate, the days of simply holding traditional open houses are over. The stopgap virtual house touring technology is here to stay, and potential homebuyers have learned to anticipate virtual walkthroughs and accurate 3D representations.

3. “Bank of Mum and Dad” Loans Are Going Strong

The term “bank of mum and dad” (BOMAD) refers to parents who give their children cash to purchase a home in today’s hot property market.

According to studies, BOMAD is one of the top 10 lenders in Australia, based on how much money is passed down from parents to children.

Given that our currency is not keeping up with inflation, many parents believe that giving their children money to buy real estate is a better use of their money and less dangerous than a guarantor.

4. Independent Mortgage Broker Channel Will Gain More Market Share

The mortgage broker channel has gradually increased in recent years. It now accounts for more than 60% of the market. As lenders continue to create cutting-edge technology with quick turn times and unparalleled levels of assistance for their broker partners, the independent mortgage broker channel is expected to grow significantly in the coming year and beyond. 

Furthermore, with a strong desire for personalised and digital experiences, more borrowers realise the advantages of dealing with an independent mortgage broker rather than a retail lender or large bank.


These forecasts are encouraging for anybody working in the mortgage sector, especially those in the wholesale channel. Independent mortgage brokers and loan officers are ideally positioned to find lending solutions that meet their clients’ demands, which means their potential for development in the future year appears infinite.

In today’s increasingly digital era, mortgage brokers must keep up or risk biting competitor dust. With Effi’s AI-powered mortgage broker CRM designed for lead generation, data tracking and improving client satisfaction, it’s never been an easier time to be a mortgage broker. To delve into how our platform can boost your efforts, subscribe for a 14-day free trial today!