Mortgage brokers have achieved a 27% year-on-year increase in the value of new settlements for the January – March 2021 quarter, according to the latest data released by research group comparator, a CoreLogic business, and commissioned by the MFAA.
The overall value of new lending facilitated by brokers in the calendar year’s initial quarter reached just over $62.2 billion, representing an increase of $13.2 billion when compared to the $49 billion settled in the March 2020 quarter.
The value of new settlements through brokers is the largest observed result for a March quarter and the second largest for any period since the MFAA first commissioned the dataset in 2013, surpassed only by the December 2020 quarter which recorded $64.1 billion.
Brokers also achieved a strong market share result in percentage terms settling 57.5% of all new residential home loans during the March 2021 quarter which is 5.4 percentage points higher than the March 2020 quarter. This is also the second highest market share ever for the quarter.
MFAA CEO Mike Felton said the result was made even more significant by the lender turnaround and discharge issues that hampered the channel during the quarter, after peaking in January of 2021.
“Data released by major aggregator AFG earlier this year showed that turnaround times had spiked to a three-year high for AFG brokers to a median across all lenders of 27.1 days for the quarter ending 31 March 2021 which will no doubt have hampered mortgage broker market share for the quarter,” Mr Felton said.
“This outstanding broker market share result however provides encouraging signs for the potential market share mortgage brokers could attain if turnaround differentials between branches and the broker channel for the major banks are eradicated and discharges start to occur within a reasonable period, both of which remain a key focus for the MFAA,” Mr Felton said.
“Ultimately, these results show yet again the resilience of brokers who continue to meet and overcome the external challenges they face thanks to an unwavering focus on customer outcomes and professional service.”
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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