Between April and June 2023, mortgage brokers wrote 67.2% of all new residential home loans, according to the latest data released by research group Comparator, a CoreLogic business, and commissioned by the MFAA.
While the result is a 0.8% decline compared to the same quarter in 2022, it is an 8.2 percentage point increase from the 59% market share reached in the June 2021 quarter.
During the June 2023 quarter, mortgage brokers settled $88.62 billion in home loans, year-on-year this represents a 7.8 percentage point decrease from the $96.08 settled in the June 2022 quarter. However, when compared quarter-on-quarter, the value of home loans settled by mortgage brokers increased $10.03 billion following three consecutive periods of decline.
MFAA CEO, Anja Pannek, said the outlook for the mortgage and finance broking industry remains strong.
“Mortgage brokers continued to write more than two out of three home loans during the June 2023 quarter, and while mortgage broker market share did dip slightly, this is consistent with normal fluctuations we have observed over the nearly 11 years we have been tracking the measure,” she said.
“Mortgage brokers continue to provide essential expertise and support to homebuyers, and those refinancing."
“Indeed, our recent member survey showed that the so called ‘refinancing boom’ has brought new clients to the broker channel as fixed rate terms end and borrowers navigate their options in the current economic environment. With over 1 million fixed rate terms still to end this year and into 2024, this is a huge opportunity for mortgage brokers.”
Ms Pannek also highlighted the growth in mortgage broker market share over time.
“When you look back to just five years ago to 2018, mortgage broker market share was at 53.9%, if you look back ten years, it was 44.9%. To see it at over 67% today is a result mortgage brokers can be proud of.
“The trajectory of mortgage broker market share is one that has been well earned through mortgage brokers’ dedication to their clients and the professional manner in which the industry has implemented reforms, particularly the Best Interests Duty which has only served to strengthen the confidence borrowers have in their broker,” Ms Pannek 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. This data can only be used publicly by referencing the MFAA as the owner of the data and its use in communications.