Connective’s director, Mark Haron, has joined fellow industry leaders in welcoming new data revealing a sharp growth in broker market share.
The director of mortgage aggregator Connective, Mark Haron, has welcomed new research from CoreLogic’s subsidiary, Comparator – released by the Mortgage and Finance Association of Australia (MFAA) – which has revealed that mortgage broker market share increased by 5.5 per cent in the September quarter of 2018 to a record high of 59.1 per cent.
In a statement to The Adviser, Mr Haron said he was not surprised by the results, given the current market environment.
“The growth in broker market share to nearly 60 per cent is not surprising, given the tightening of lending criteria by many banks, especially the major banks,” he said.
“The growth reflects customers turning to brokers for their ability to provide choice, experience, and assist them with an increasingly complex lending requirements.”
He added: “The increase in use of broker by home loan customers also shows the benefits of using a broker are not purely based on getting access to better interest rates but also broader range of lenders and lending policies.”
Mr Haron joins MFAA CEO Mike Felton, AFG CEO David Bailey, Loan Market executive chairman Sam White and Mortgage Choice CEO Susan Mitchell in welcoming the new figures.
Mr White said the data is “great news” for the broking industry, in light of public scrutiny, particularly from the financial services royal commission, and added that upward growth in broker market share has persisted in an environment riddled with change and uncertainty.
Earlier, Mr Bailey echoed remarks made by Mr Felton, noting that borrowers are increasingly looking to brokers for support to make sense of complex nature of the current lending landscape, and noted that brokers are being rewarded for their hard work.
Mr Bailey stated that he believes the continued growth in broker market share is proof that borrowers do not approve of “drastic change” to the industry model amid the threat of reform.
Further, Ms Mitchell said consumers are “voting with their feet” and choosing to secure a home loan with the help of a mortgage broker.
Both Ms Mitchell and Mr White said that they expect broker market share to continue rising, with Mr White predicting market share growth of 70-80 per cent in the coming years.
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