Historic highs in asset value have transformed mortgage trail books. Valuation multiples have jumped from 1.8x to 3.75x.
Input your annual trail income to see the massive shift in potential sale value.
Market Context:
Historic Value
2025 Potential Value
Not all books are equal. Buyers are paying premiums for "bond-like" residential income while discounting aged books due to runoff risk.
Considered stable income. Low refinance risk due to serviceability buffers.
2.75x - 3.75xHigh risk of loan discharge due to downsizing or estate realization.
1.2x - 1.8xLarge groups are aggressively acquiring books to secure market share and achieve economies of scale.
In a volatile economy, the passive nature of trail income is prized by investors seeking to smooth cash flow.
High-quality, clean books with low arrears are in short supply, creating a true seller's market.
To hit the 3.5x+ range, you must transition from a depleting asset to a going concern.
Brokers should start planning 2-5 years in advance to "groom" the book.
Document processes for lead intake and settlement.
Reduce risk by establishing partners beyond your network.
Automated reviews and fixed-rate expiry alerts.
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