The value that mortgage brokers bring to consumers has driven the sector to new highs today, with the latest industry data showing that brokers are now responsible for more than two in every three new home loans written.
Between July and September 2021 mortgage brokers facilitated a record high of 66.9% of all new residential home loans, according to the latest data released by research group comparator, a CoreLogic business, and commissioned by the MFAA.
The result is a significant 6.8 percentage points higher than the previous record of 60.1% market share achieved in the September 2020 quarter, and a 12 percentage point increase from the 54.9% achieved in the September 2019 quarter.
The total value of mortgages settled through brokers saw the largest quarter-on-quarter and year-on-year increases since reporting began. A record high of $93.42 billion in loans were settled in the quarter, representing a 62.5% year-on-year increase on the $57.47 billion settled in the same quarter in 2020, and 20% increase on the previous record of $77.75 billion set in the June 2021 quarter.
MFAA Chief Executive Officer Mike Felton said the results were the result of ongoing referrals from satisfied customers, demonstrating that mortgage broker customers are benefiting from both the service their broker is providing, and the positive policy changes made across the sector.
“This market share is appropriate recognition of an industry that has implemented significant reforms which continue to drive consumer trust and confidence in the mortgage broking sector,” said MFAA CEO Mike Felton.
“Not only do mortgage brokers provide consumers with choice, experience and convenience, they now provide an unrivalled Best Interests Duty which further differentiates our channel and provides yet another compelling reason to use the services of a mortgage broker,” he said.
“What makes this result even more remarkable is that it coincided with extended periods of lockdown in New South Wales, Victoria and other states.”
In addition, Mr Felton commented on the impact of improved lender turnarounds on the broker segment.
“This result also reflects the improvement in lender application approval turnarounds in the third quarter and highlights the type of broker market share that can be achieved when lender turnarounds for broker introduced business are less stifled,” said Mr Felton.
Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments. The MFAA releases these statistics each quarter. This data can only be used publicly by referencing the MFAA as the owner of the data and its use in communications.
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