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Broker market share tipped to hit 60% in new year

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Emma Ryan and James Mitchell 6 minute read

The head of one of Australia’s leading brokerages has predicted that the third-party channel will continue to gain further market share over the next 12 months.

Loan Market chairman Sam White told The Adviser that this year’s shifting regulatory environment will see the broker value proposition increase in 2016.

“We expect broker market share next year to get to 60 per cent of all new business,” Mr White said.

“In the UK, that number is now 75 per cent and growing based on the increased regulation that has occurred in that market.”


Mr White said APRA’s product and lending criteria changes as well as increased ASIC scrutiny has made the role of a mortgage broker that much more important to consumers.

“APRA’s product and lending criteria changes have meant it’s more important than ever that brokers are involved, [and] the increased ASIC scrutiny has meant our industry has continued to become more professional and means we can continue to earn the right to sit at the table when policy and consumers intersect.”

However, Mr White noted that there are some distinct headwinds that brokers should expect as a result of cooling property market predictions.

“We believe market growth will be moderated next year and we’ll see a relatively benign interest rate environment,” Mr White said.

“This will probably mean fewer new transactions and fewer refinance opportunities in the year ahead. But it does not mean that brokers can’t grow their business in the next 12 months. Those that do will have increased their prospecting activities, and look for ways to increase their referrals coming from their referral partners.”


Communication and integration with regulators will be another key challenge for the third-party channel next year, according to Mr White.

“It’s not something to fear but rather an area we need to continue to invest in,” he added.

Meanwhile, a new MFAA report by CoreLogic research group Comparator shows that mortgage brokers were responsible for 52.6 per cent of new lending in the residential home loan market during the September quarter.

[Related: Brokers introduce two-thirds of all new home loans]

Broker market share tipped to hit 60% in new year
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.



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