More than 60% of residential mortgages were written by brokers between July and September this year.
The latest data by Comparator (business of CoreLogic) and the Mortgage and Finance Association of Australia (MFAA) has shown that the mortgage broker channel has recorded its highest ever market share result with brokers settling 60.1% of all residential home loans during the last quarter. The latest result is 0.4% higher than the previous market share record of 59.7% set in March 2019.
As well as breaking market share record, the value of new settlements recorded in the September 2020 quarter is also the largest by dollar value ever observed. The report found that the top 18 leading brokers and aggregators settled $57.47 billion of new home loans. This represents an increase 24.82% in the value of new lending when compared year-on-year to the previous year.
These results mirror the general trends observed by the Australian Bureau of Statistics, which found that owner-occupier housing loan commitments hit record-high levels in the last quarter, driven by low interest rates and government incentives (such as First Home Loan Deposit Scheme and Home Builder).
MFAA CEO Mike Felton said the result demonstrates the critical role that brokers play in supporting their customers and the economy, and the impact they have made at a time when they were needed the most.
“This phenomenal market share result reflects the tireless support and assistance brokers have provided their customers to help them navigate the challenges posed by the COVID-19 pandemic and the first recession Australia has experienced in 29 years,” Mr. Felton said.
“It is also evidence of the ever-increasing trust and confidence that consumers are placing in mortgage brokers as our industry faces the imminent introduction of a Best Interest Duty and related reforms. We are confident that these reforms will continue to differentiate our channel and that our industry can look forward to further increases in market share in the years ahead.
“While I am always proud of the hard work and professionalism of everyone in our industry, the way brokers have overcome their own challenges and vulnerabilities this year, maintained their focus on their customer’s needs, while achieving their highest market share result to date, has been nothing short of inspirational,” Mr. Felton said.
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