The latest insights into the mortgage broking industry have been released by the Mortgage & Finance Association of Australia in the sixteenth edition of its Industry Intelligence Service report.
The report covers the six-month period from 1 October 2022 to 31 March 2023 and draws on data supplied by the industry’s leading aggregator brands to provide mortgage broker, industry performance and demographic data.
MFAA CEO Anja Pannek said the report reinforces feedback from members on the impact interest rate rises and record levels of refinancing are having on brokers and their clients.
“The period covered in the report coincided with a period of intense refinancing as fixed rate mortgages reverted to variable, clients encountered serviceability constraints and a moderation of property prices in some markets,” said Ms Pannek.
“This confluence of factors can be seen in this industry research, however the outstanding service mortgage brokers deliver to their clients has remained a constant throughout this time.”
During the period mortgage brokers maintained a strong market share, writing 69.6% of all residential home loans in the March 2023 quarter, while in the 12 months to March 2023 mortgage brokers settled a record $358.68 billion in home loans.
The report also shows that in comparison to the October 2021 – March 2022 period, the total value of loans settled by mortgage brokers declined 8.63%. However, Ms Pannek noted that despite this fall the broker channel outperformed the overall home loan lending market.
“It was not unexpected to see a decline in values settled due to property market conditions. We looked deeper to understand how the broker channel was performing versus the total home loan market,” she explained.
“Our further analysis shows that whilst the value of home loans settled by brokers declined 8.63% for the period, the lending market as a whole – broker and proprietary channels – declined 10.89% over the same period. This highlights that the broker market is meeting more needs of more consumers in a challenging economic environment.”
The number of brokers remained above 19,000 for the second consecutive six-month period, at 19,456, a 4.69% increase year-on-year.
Following three successive periods of decline, the proportion of female brokers was 26.9% during the period, up from 25.4% as reported in the previous period.
“It’s really pleasing to see an increase in the proportion of female brokers in the industry, however progress still remains slow. An industry that is welcoming and supportive of people from all walks of life is a goal we need to strive for and keep as a focus.” said Ms Pannek.
“At the MFAA we will continue to work with industry to implement strategies that drive an industry that is diverse, equitable and inclusive.”
Year-on-year the number of mortgage brokers who wrote a commercial loan increased 8.67% to 5,864, the second highest result to date.
Nationally, the average total broker remuneration, prior to costs, was $181,199. This figure includes an average of $108,103 in up-front commissions and $73,096 in average trail commissions.
Market share of the major banks segment declined in the March 2023 quarter to 45.8% following a 2.7 percentage point increase in the December 2022 quarter to 49.9%.
Download the Industry Intelligence Service (IIS) report 16th edition.