Mortgage brokers settled just over $198 billion in home loans in 2018, a record amount for the year-to-September period, according to the latest Industry Intelligence Service Report, 7th edn., compiled by comparator and published exclusively by the MFAA.
The latest report, for the April-to-September 2018 period, also saw the mortgage broker population exceed 17,000 brokers for the first time, while average gross earnings per broker increased from $132,793 to $133,365 year-on-year – all during a period of tightening credit and softening housing sales.
MFAA CEO, Mike Felton, said of the latest data, "even though the broker channel has been under immense pressure this period, and despite the tightening of credit in the residential housing sector, brokers have continued to cement the important role they play in the lives of Australian consumers and demonstrate the value and service they offer."
Whilst, overall, the mortgage broking sector recorded stand-out results on certain metrics, on other metrics, and on a state-by-state basis, the results were more muted.
Nationally, year-on-year, the number of home loans lodged for the April-to-September period was down 6% to 284,830, the average number of applications lodged per broker was down from 18 to 17 and the national average value of home loans settled per broker declined from $5.9 million to $5.75 million, down by 2.6%.
State-by-state, New South Wales and ACT suffered declines across a variety of metrics – driven by declining average residential sales values and sales volumes; Victoria grew overall, whilst Tasmania (from lower bases), continued its strong and growing form.
The shift away from the major banks continues in the latest IIS Report, with the segment recording another record low market share result. The major banks have now seen their market share reduce from the high of 59.8% recorded in April-to-June 2015 to 45.6% as at July-to-September 2018. Over the last year the major bank segment has lost 5.1% market share whilst lenders other than the major banks and their affiliates have achieved another record market share and value-settled result. This segment now controls 33.9% of the broker-originated market, up 12.25% or 3.7 percentage points when compared to the end of the last IIS Report period, January-to-March 2018. The value of loans settled has also increased significantly, by $2.85 billion or 21.78%.
"Despite the uncertainty, brokers have continued to adapt, take market share and drive competition as the data continues to show a reduction in the reliance on the major banks and their affiliates. This is testament to a healthy broker segment and a positive outlook during a period of undoubted change," Mr Felton said.
Included in this report are insights on state-based, and national, residential housing sales volumes and average values, and the ever-popular Benchmark your Business section returns.
