Mortgage broker market share reaches 71.8%: MFAA

The latest data released by the Mortgage & Finance Association of Australia (MFAA) has revealed that 71.8 per cent of all new residential home loans were written by mortgage brokers between October and December 2023.

This has broken the previous all-time record of 71.7 per cent in the September 2022 quarter.

Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 15 of the leading brokers and aggregators as a percentage of Australian Bureau of Statistics (ABS) housing finance commitments.

During the December 2023 quarter, mortgage broker market share rose 0.3 percentage points from the September 2023 quarter, according to the MFAA.

Annually, these figures represented a rise of 2.5 percentage points (December 2022 quarter to 2023) and 5.3 percentage points when compared to the December 2021 quarter.

Furthermore, the value of loans written by mortgage brokers also rose during the December 2023 quarter, with the nation’s brokers settling $94.06 billion in home loans, revealing a 5 per cent year-on-year increase.

According to the MFAA, this was the third consecutive period of growth since settlement values dropped to $78.59 billion in the March 2023 quarter.

Chief executive of the MFAA, Anja Pannek, said that this latest record-breaking market share is a clear reflection of brokers’ commitment, professional approach, and the trust clients have in their brokers.

“Mortgage brokers play a pivotal role in the home loan market, providing their clients with a broad spectrum of choices and expert guidance,” she said.

“It’s very clear from the continued growth in market share that Australians value this support when making important financial decisions around buying a home or investing in property.”

Pannek further stated that this latest increase in market share was contrary to historical trends typically seen in the December quarter.

This is only the third time the December quarter market share rose when compared to the previous quarter since the association began reporting on broker market share in 2012.

“Market fluctuations are normal, and we do tend to see a slight dip in mortgage broker market share at the end of the calendar year as activity in the property market declines,” Pannek said.

“Mortgage brokers offer support and guidance regardless of the time of year, and with interest rates elevated, property prices increasing and cost-of-living pressures it makes sense for borrowers to talk to their mortgage broker.”

[RELATED: Broker market share rebounds: MFAA]

Written by Adrian Suljanovic

Last Updated: 16 April 2024

Published: 03 April 2024