Broker market share tipped to hit 60% in new year

“We expect broker market share next year to get to 60 per cent of all new business,” Mr White said.

“In the UK, that number is now 75 per cent and growing based on the increased regulation that has occurred in that market.”

Mr White said APRA’s product and lending criteria changes as well as increased ASIC scrutiny has made the role of a mortgage broker that much more important to consumers.

“APRA’s product and lending criteria changes have meant it’s more important than ever that brokers are involved, [and] the increased ASIC scrutiny has meant our industry has continued to become more professional and means we can continue to earn the right to sit at the table when policy and consumers intersect.”

However, Mr White noted that there are some distinct headwinds that brokers should expect as a result of cooling property market predictions.

“We believe market growth will be moderated next year and we’ll see a relatively benign interest rate environment,” Mr White said.

“This will probably mean fewer new transactions and fewer refinance opportunities in the year ahead. But it does not mean that brokers can’t grow their business in the next 12 months. Those that do will have increased their prospecting activities, and look for ways to increase their referrals coming from their referral partners.”

Communication and integration with regulators will be another key challenge for the third-party channel next year, according to Mr White.

“It’s not something to fear but rather an area we need to continue to invest in,” he added.

Meanwhile, a new MFAA report by CoreLogic research group Comparator shows that mortgage brokers were responsible for 52.6 per cent of new lending in the residential home loan market during the September quarter.

[Related: Brokers introduce two-thirds of all new home loans]