Australian homebuyers are turning to mortgage brokers in record numbers, according to the latest data released by the Mortgage & Finance Association of Australia (MFAA).
Between January and March 2024, 74.1% of all new home loans were written by mortgage brokers. This marks the highest mortgage broker market share on record, solidifying brokers as the clear choice for borrowers.
“This result underscores the invaluable role mortgage brokers play in the Australian home lending market,” said MFAA CEO Anja Pannek.
“Mortgage brokers offer personalised guidance and support throughout the entire home loan process, helping Australians navigate what is an increasingly complex lending landscape.
"The value mortgage brokers offer their clients cannot be underestimated. They have brought choice and competition to the market, and act in the best interests of their clients.”
In the March 2024 quarter mortgage broker rose 4.5 percentage points compared to the same period in 2023. Compared to the same period in 2020, mortgage broker market share has risen by 22 percentage points.
Ms Pannek said the surge in mortgage broker market share over the past few years has been driven by the trust mortgage brokers have established with Australian home buyers.
“Australians are making the choice to go through a mortgage broker, and it’s about more than an interest rate,” she said.
“Australians trust their mortgage broker. Not only are brokers bound by the Best Interest Duty, they provide so much more than a loan.
“Brokers are also helping to increase the financial literacy of their clients, showing their clients where they can make shifts in their budgets to reach their goals, and they do everything they can to find solutions for their clients.”
The value of loans written by mortgage brokers during the March 2024 quarter was $81.47 billion. While this was a $12.59 billion decrease compared to the December 2023 quarter, it was a 3.7% year-on-year increase and the second highest value observed in March 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.
