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Broker-originated settlements have broken records once again, new MFAA research data has shown.
Brokers settled the largest value of mortgages on record in the June 2022 quarter, according to new figures.
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CoreLogic business Comparator was commissioned by the Mortgage & Finance Association of Australia (MFAA) to detail broker market share and loan values for the three months ending June 2022.
By calculating the value of loans settled by 18 brokers and aggregator groups as a percentage of ABS housing finance commitments, the researchers found that mortgage brokers settled $96.08 billion of home loans during the quarter.
According to the MFAA, this represents the highest value of broker-originated home loans settled for any quarter on record, up 23.58 per cent on the same period last year, and representing an 81.97 per cent when compared to the same quarter in 2020.
Moreover, mortgage brokers facilitated 68 per cent of all new residential home loans during the June quarter of 2022 – the highest percentage recorded for a June quarter.
The market share figure is up 9 percentage points compared to the 59 per cent from the same quarter in 2021, and an 11 percentage point increase from the 57 per cent recorded in the June 2020 quarter.
However, the figure had dropped on the March quarter figures – when a record 69.5 per cent of home loans were written by brokers.
Incoming MFAA CEO Anja Pannek said the June figures were an “incredible result” for mortgage brokers, especially during a time of rising interest rates and a slowdown in the property market.
“It is clear from the strong growth in the proportion of home loans written by mortgage brokers over the past few years that customers value the service mortgage brokers offer.
“Market conditions like we are seeing now further highlight the benefits of using a mortgage broker who can explain the array of different lenders, products and options available to their clients,” Ms Pannek said.
She further commented that these results reflect the “ongoing increases in consumer trust” and confidence in the broking industry, coming off the back of five years of successful reform.
[RELATED: 70% of mortgages go through a broker: MFAA]
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