Research / News

Mortgage brokers break market share record, again

The latest market share data released by the Mortgage & Finance Association of Australia (MFAA) has confirmed that mortgage brokers clearly remain the channel of choice for Australian homebuyers.

Between October and December 2023, a record 71.8% of all new residential home loans were written by mortgage brokers, the highest result observed since the measure has been recorded. The previous high was 71.7% recorded in the September 2022 quarter.

MFAA CEO Anja Pannek said that mortgage brokers consistently provide outstanding service to their clients and this latest record-breaking market share is a clear reflection of their commitment, professional approach and the trust Australians have in their broker.

“Mortgage brokers play a pivotal role in the home loan market, providing their clients with a broad spectrum of choices and expert guidance. It’s very clear from the continued growth in market share that Australians value this support when making important financial decisions around buying a home or investing in property,” she said.

Ms Pannek also noted that the latest lift in mortgage broker market share was in contrast to historical trends traditionally seen in the December quarter.

Since the MFAA started reporting mortgage broker market share in 2012, this is just the third time the December quarter market share has increased compared to the preceding quarter.

“Market fluctuations are normal, and we do tend to see a slight dip in mortgage broker market share at the end of the calendar year as activity in the property market declines.” Ms Pannek explained.

“Mortgage brokers offer support and guidance regardless of the time of year, and with interest rates elevated, property prices increasing and cost of living pressures it makes sense for borrowers to talk to their mortgage broker.”

In the December 2023 quarter mortgage broker rose 0.3 percentage points from the September 2023 quarter. In comparison to the December 2022 quarter, mortgage broker market share rose 2.5 percentage points, and 5.3 percentage points when compared to the December 2021 quarter.

The value of loans written by mortgage also rose during the December 2023 quarter with mortgage brokers settling $94.06 billion in home loans, marking a 5% increase year-on-year increase. It was also the third consecutive period of growth since settlement values dipped to $78.59 billion in the March 2023 quarter.

Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 15 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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