Powered by MOMENTUM MEDIA
the adviser logo
Broker

Broker share hits record high for December quarter

by Charbel Kadib10 minute read
Broker share hits record high for December quarter

The share of home loans originated by the broker channel has hit new heights for the December quarter, according to new research commissioned by the MFAA.

New data released by research group Comparator, and commissioned by the Mortgage & Finance Association of Australia (MFAA), has reported that broker market share increased to 56.8 per cent in the quarter ending 31 December 2018, up from 53.6 per cent in the previous corresponding period.

While down from 59.1 per cent in the previous quarter, the year-on-year percentage growth (3.2 per cent) was the largest in five years.

Further, the research found that the value of loans originated by brokers dropped year-on-year, with Australia’s largest aggregators settling $48.7 billion in new home loans during the December quarter of 2018, down 6.6 per cent from $52.2 billion in loans settled over the December quarter of 2017.

==
==

However, over the same period, the overall size of the market declined 11.8 per cent, which according to the MFAA, suggests that mortgage brokers have gained ground on the proprietary channel.

MFAA CEO Mike Felton observed that the result reflected the “unwavering trust and confidence customers have in their mortgage broker”, particularly as it coincided with the scrutiny placed on the industry during the final round of the banking royal commission.   

“This result is a very strong outcome for the mortgage broker channel,” Mr Felton said.

“Not only have mortgage brokers grown market share, but the result coincided with November’s extremely high-profile public hearings as part of the royal commission, which was one of the most challenging periods for our industry in recent memory.”

Mr Felton continued: “This is an outstanding result in the context of an overall decline in market size, ongoing credit tightening, and the unfounded criticism and uncertainty that came with the royal commission.

“It demonstrates that despite the noise, brokers remained focused and continued to work hard to meet their customer’s needs.”

“This quarterly market share outcome is further evidence that the competition, choice and access to credit that mortgage brokers provide continues to shine through and tell the true story of an industry that is a force for good.”

The rise in broker market share has also been reflected in recent financial results published by the big four banks, with both ANZ and NAB reporting an increase in the number of home loans originated by the third-party channel.

[Related: Third-party channel dominated NAB’s mortgage growth]

arrowup businessman ta

Charbel Kadib

AUTHOR

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: [email protected]

magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more