The mortgage broker channel has achieved its highest-ever residential home loan market share for the October – December quarter in 2018, maintaining strong performance despite an overall reduction in new lending and significant external challenges.
Mortgage brokers settled 56.8 per cent of all residential home loans during the December 2018 quarter, according to the latest data released by research group comparator, a CoreLogic business, and commissioned by the MFAA.
This is a 3.2 percentage point gain when compared to the December quarter in 2017 (53.6 per cent) and is the largest percentage point gain for the December quarter in the last five years.
The leading aggregators settled $48.77 billion of new home loans during the December 2018 quarter, which represents a decline of 6.6 per cent in the overall value of new lending when compared year-on-year to the $52.24 billion settled in December 2017.
However, during the same period, the overall size of the market declined 11.8 per cent, meaning mortgage brokers have continued to take market share from the proprietary channel.
MFAA CEO Mike Felton said the result reflected the unwavering trust and confidence customers have in their mortgage broker, particularly as it coincided with a period of significant industry disruption in the form of ongoing Royal Commission hearings.
“This result is a very strong outcome for the mortgage broker channel. Not only have mortgage brokers grown market share, but the result coincided with November’s extremely high-profile public hearings as part of the Royal Commission, which was one of the most challenging periods for our industry in recent memory,” Mr Felton said.
“This is an outstanding result in the context of an overall decline in market size, ongoing credit tightening, and the unfounded criticism and uncertainty that came with the Royal Commission. It demonstrates that despite the noise, brokers remained focussed and continued to work hard to meet their customer’s needs.
“This quarterly market share outcome is further evidence that the competition, choice, and access to credit that mortgage brokers provide continues to shine through and tell the true story of an industry that is a force for good,” Mr Felton said.
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.
