In the coming years customers will see big changes as the finance industry evolves with new technology, better communication between lenders and client-centric approaches to data. NAB’s Market Megatrends Report 2024 shows a huge shift in the economic landscape and mortgage broking, with trends that will impact how you deal with lenders and brokers in the near future.
The Mortgage Process is Becoming (More) Digital
Digital-first mortgage processes are changing how you deal with lenders. Imagine applying for a mortgage in minutes not hours with little paperwork. As NAB’s 2024 Report states, lenders can already provide fast turnaround and 24-hour approvals. But the future is even more exciting: AI and digital portals will guide you step by step from application to approval, lowering the back and forth that used to take days or weeks. Open banking will allow you to share your financial data securely, no more searching for pay slips, credit card statements or bank statements.
Credit assessment automation will also speed up the approval process, with auto approvals when you meet the lending standards. Automation and digital tools will help brokers like Entourage deliver faster and more transparent mortgage solutions and make the journey smoother and less stressful. The future of mortgage broking is all about convenience, speed, and less stress.
Tailored Mortgages for your unique needs
The industry is moving towards personalised mortgage options so loans will be more tailored to you and your financial goals. Medico-legal loans, first-home buyer options and ethical lending options are already available. Brokers are moving away from the one-size-fits-all approach and are focusing on niche areas like occupation-specific loans, eco-homes and investment properties.
As demand for personalised mortgage options increases brokers will become more proficient at helping you with your personal property and financial requirements whether you’re buying a luxury property or an eco home. This means brokers will give you more relevant and targeted guidance so you can make decisions that align with your lifestyle and goals.
Enhanced Consumer Protection & Transparency
As the mortgage industry evolves, borrowers can expect greater transparency and security in their dealings with lenders and brokers. The NAB Market Megatrends Report 2024 highlights advancements in regulatory standards and data protection, ensuring that borrowers are better informed and safeguarded throughout the mortgage process.
New initiatives focus on securing personal data, with stringent standards to protect how financial information is stored and shared. These measures help borrowers feel confident that their sensitive information is handled responsibly and securely.
Additionally, brokers are now equipped with tools and insights that make it easier to provide clear, tailored guidance. This ensures that mortgage decisions are not only aligned with immediate needs but also consider long-term financial well-being. Transparency in loan terms, fees, and processes empowers borrowers to make more confident and informed decisions, shaping a fairer and more client-focused mortgage market for 2025 and beyond.
The Increase In Green Mortgages
Sustainability is becoming a top focus for many homebuyers and with green loans backed by APRA, green options are becoming more available. These loans offer incentives like lower interest rates or special terms for homes that meet energy efficiency standards, in line with the broader trend of sustainable property investments.
If you’re buying a home with solar panels, energy-efficient appliances or sustainable building materials a green mortgage could reduce your loan costs and align with your values. They will become more popular in the coming years and brokers will become more familiar in helping you navigate these options so you get the best deal for your sustainable property.
Market Megatrends Impacting Mortgage Broking
The NAB Report highlights several long-term trends that will continue to shape the mortgage broking industry:
- Housing Demand – With property prices going up and demand for homes increasing, brokers will need to offer solutions to help buyers navigate affordability.
- Wealth Transfer – $5.4 Trillion of wealth will transfer between generations, and brokers will be in a great position to help clients manage intergenerational wealth transfer and plan for future property investments.
- Investor Opportunities – With property investors looking at capital growth areas, brokers will be key in helping clients find investment opportunities.
- Technology Integration – As digital and AI continues to evolve, mortgage broking will become more automated, and brokers will be able to deliver faster and more precise services to clients.
- Cybersecurity Focus – With more reliance on digital platforms, customer data protection will be at the top of brokers’ minds and lenders’ minds.
These trends sum up the mortgage broking landscape, where brokers are becoming more specialist, tech-savvy, and committed to delivering consumers with bespoke, transparent, and efficient mortgage solutions.
Looking ahead into 2025
As the mortgage industry continues to evolve, the focus will be on providing a more consumer-friendly, transparent, and efficient experience. With the rise of digital tools, personalised mortgage options, and enhanced consumer protection, the mortgage process is set to become quicker, more flexible, and aligned with individual needs.
Whether you’re an investor, first-time buyer, or someone seeking a sustainable living solution, the future of mortgage broking will empower you to make informed decisions and access financial products that align with your goals.
Entourage is committed to staying ahead of these trends, ensuring you’re always informed and supported as the landscape changes. By adopting these advancements, we aim to help you make confident decisions that secure your financial future.