Brokers see highest ever market share
The mortgage broker channel has achieved its highest ever residential home loan market share despite an overall reduction in lending of $8.46 billion compared to the same period in 2017.
According to the latest data released by research group comparator, a CoreLogic business, during the September 2018 quarter mortgage brokers settled an unprecedented 59.1% of all residential home loans.
This is the second ever biggest jump in broker share since records began in 2012.
Compared to previous September quarter results of 53.6% in 2016 and 55.7% in 2017, 59.1% is an exceptionally strong outcome for the industry and largest year on year increase for any quarter in the last four years.
Although settled broker volume dropped between the September 2017 and September 2018 quarters from $51.77 billion to $50.19 billion, a 3% fall, when taken in context with an overall market decline of 8.5% from $98.79 billion to $90.33 billion in the same period, the broker outcome represents an outstanding result.
MFAA CEO Mike Felton said the result reflects not only the trust and confidence customers have in their mortgage broker but the systemic importance of the mortgage broking industry.
“This result has occurred during a period of severe credit tightening with brokers stepping in to provide critical assistance in the redistribution of credit demand for those seeking home lending,” Felton said.
“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.
“In addition to providing customers 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.”
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