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Brokers reach historic milestone

 

 

Brokers reach historic milestone

Staff Reporter Comments 0
— 1 minute read

History may remember 2014 as the year in which brokers became the dominant force in the Australian mortgage market.

Brokers are now writing a majority of Australia's home loans for the first time in history.

According to research commissioned by the MFAA, brokers were responsible for 51.5 per cent of residential finance in July, August and September.

That compared to a market share of 49.7 per cent in the June quarter and 49.9 per cent in the March quarter.

The findings were based on data provided by 19 aggregators.

Brokers were also responsible for 67 per cent of the growth in the mortgage market during the 12 months to 30 September 2014.

The third-party channel accounted for $37.7 billion of the $56.2 billion increase in mortgage lending reported by the Australian Bureau of Statistics.

Brokers wrote a total of $151.7 billion of mortgages during that 12-month period, according to the MFAA.

That represented growth of 33 per cent, compared to growth in total housing finance commitments of only 20 per cent.

MFAA chief executive Siobhan Hayden said the results show that customers are increasingly turning to brokers, irrespective of the health of the general market.

"The broker channel is going from strength to strength over time, and represents the consistent efforts that brokers are making to offer the best possible service to their customers," she said.

[Related: Brokers eye 75pc market share]

Brokers reach historic milestone
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