Here is a great article talking, indirectly, on how mortgage brokers are very good for the economy and the end-consumers.
In Australia, banks own over 93% of the mortgage market. There is no mortgage-securitization (CMHC) over there, which makes it very difficult for non-bank lenders (mono-line lenders) to compete in that marketplace. And – for those of you who have a very basic understanding of economics – what does a lack of competition in an industry lead to? More expensive pricing and less options for the consumer!
Having mortgage brokers active and competitive in the marketplace creates very healthy competition in the mortgage market. Independent mortgage brokers have access to multitudes of "mono-line" lenders (meaning they only do mortgages; no chequing, savings accounts, or opportunities for cross-selling 🙂 ) that the consumer only has access to through the mortgage broker channel. Often times the interest rates are lower than what the banks are advertising, and ultimately are more products and niches for the end consumer to choose from.
Click here for the article.