Brokers have achieved its highest ever residential home loan market despite an overall reduction in lending of $8.46 billion compared to the same period in 2017!
Borrowers are increasingly choosing to go through the broker channel rather than through the bank direct, with new statistics reporting a sharp rise in broker market share.
The recent data released by research group comparator, CoreLogic, mortgage brokers settled 59.1% of all residential home loans during the September quarter of 2018. Which is a 5.7% increase from the 2017 September quarter.
This has been the largest year-on-year increase for any quarter over the last four years despite a 3 per cent drop in broker volumes from September 2017 and September 2018 quarter dropping from 51.77 billion to 50.19 billion. However, the drop came amid an overall market decline of 8.5 percent from $98.79 billion to $90.33 over the same period.
The Mortgage and Finance Association of Australia (MFAA) CEO Mike Felton stated – “This result has occurred during the period of severe credit tightening with brokers stepping in to provide critical assistance in the redistribution of credit demand for those seeking home lending’
‘As banks have persisted in making it more difficult to secure a loan, turning many would-be borrowers away, consumers have continued to increasingly utilise the broker channel for experience, expertise and greater market choice to secure access to credit”.
Mike Felton finished off with; “in addition to providing access to a panel of 34 lenders on average, brokers are ideally positioned to help customers, especially those with more complex lending scenarios, to understand the ever-evolving application process and provide the information necessary to meet changing lender requirements’
‘Mortgage brokers continue to offer choice to consumers and ensure credit continues to flow, which is of systemic importance to the housing market and a strong economy’.
With greater options, opportunity and expertise, why limit yourself to one lender. If you are in the market to purchase a home, refinance your home or even finance your new car, book an obligation free consultation with one of our Finance Specialist.
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