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Brokers continue to smash records: MFAA

by Annie Kane10 minute read
Brokers continue to smash records: MFAA

Mortgage brokers settled nearly $78 billion of home loans in the June quarter, the highest quarterly figure ever achieved, according to the MFAA.

The latest data released by research group comparator (a CoreLogic business) and commissioned by the Mortgage & Finance Association of Australia (MFAA), shows that brokers set two new records over the June quarter this year.

The data is compiled by calculating the value of loans settled by 18 brokerages and aggregators as a percentage of ABS Housing Finance commitments. 

Notably, the third-party channel settled a record value of loans over the three-month period, hitting a new high of $77.75 billion.


This figure is $13.65 billion more than the previous record (set in December 2020, when $64.1 billion in home loans were settled by brokers), and the highest figure recorded for the June quarter.

It marks a 47.25 per cent year-on-year increase in the value of new settlements for the April to June 2021 quarter (given that $52.8 billion was settled in the June 2020 quarter)

As well as reaching a new settlement record, brokers also set a new market share record for the June quarter.

The data shows that brokers settled 59.0 per cent of all new residential home loans during the June 2021 quarter, the highest result for that period and 2.0 percentage points higher than the June 2020 quarter. 

Noting the new figures, MFAA chief executive Mike Felton said it was well-deserved recognition of the long hours and frustrations that mortgage brokers were required to endure during the period.

“This outstanding broker market share result is made even more significant given it was achieved despite the lender turnaround issues that existed for many lenders during the quarter,” he said.

“It does, however, also highlight the real extent of the broker volume which lenders have had to process during the quarter.

“The massive increase in volume and record market share for the quarter are further indications of the ever increasing trust and confidence consumers have in their broker and the unrivalled best interests duty a mortgage broker provides.”  

The MFAA figures follow on from record levels of mortgage activity in Australia. 

The latest financial results from both lenders and aggregators have shown record levels of broker activity in the last financial year.

Aggregators including AFG, Finsure, Connective, and FAST have all recently revealed surging settlements – as have lenders such as Pepper and Resimac.

Moreover, the latest statistics from the Australian Prudential Regulation Authority (APRA), total residents’ loans and financial leases have been increasing month-on-month.

Its Monthly Authorised Deposit-taking Institution Statistics (MADIS) for July 2021 has revealed that there was an $8.5 billion – or 0.7 per cent – rise in owner-occupied lending, which it says “continues to reflect strong borrower demand bolstered by low mortgage interest rates, and government measures supporting first home buyers and new home building.”

As well as rising mortgage activity, there are believed to be a growing number of brokers in Australia.

The Finance Brokers Association of Australia (FBAA) recently released data, compiled by research institute CoreData, which found that there were 19,683 registered credit representatives in Australia in the calendar year 2020, up from 17,881 in 2019.

[Related: Broker market share surpasses 60%]

record money


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