Brokers write an industry high $50.19 billion for the December 2016 quarter

Posted: 16/02/2017

​According to research group ‘comparator’, a CoreLogic business, finance brokers originated at least $50.19 billion in new home loans* during the December 2016 quarter. This result is the first time that broker originated lending has exceeded $50 billion in a quarter. The 2016 annual result is $188.5 billion, again the highest value since the data has been collected.

​​Mortgage brokers originated 51.9% of new residential home loans during the December 2016 quarter, based on data sourced from 19 leading brokers groups and aggregators. This differs slightly from the 53.6% settled in the September 2016 quarter and matches the figure from the same quarter in December 2015 at 51.8%.

“The market share result for the end quarter of 2016 is just slightly ahead of the comparative figure for 2015, showing that consumers still support the broker position with the majority of residential lending. The softening in market share is a seasonal trend experienced since 2014 and does not reflect any change in brokers’ customer satisfaction. The past three December quarters have shown an adjustment in share followed by a rise in subsequent quarters,” stated MFAA CEO Mike Felton.

“Brokers have an established role in the investor side of the market and this segment of borrowers has been impacted with the recent changes in lending restrictions. The ABS data also shows a flattening of the housing market with an overall 0.5% decrease in the number of settlements and a 1.1% increase in value of settlements for the 6 months ended September 2016. The December quarter result, however still reflects solid consumer support for brokers in Australia in the residential lending sector,” Felton added.

Research group ‘comparator’ provides the quarterly figure by calculating the value of loans settled through 19 of the leading aggregator groups as a percentage of the ABS Housing Finance commitments. The MFAA releases this statistic each quarter.