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Loan Market monthly lodgements top $3bn

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Reporter 4 minute read

The major brokerage has reportedly made application lodgements worth over $3 billion during March, which it said was a new monthly record.

Loan Market has made $3.1 billion worth of applications during March, which it said is a new monthly record for lodgements.

The value of lodgements made over March is 76 per cent higher than March 2020, while the network’s brokers submitted an average of $4.8 million each in loans over the month, the brokerage said.

It added that the lodgement figure has coincided with a rise in Loan Market’s affiliate and real estate network Ray White, which also reported a monthly record of $8.5 billion in sales over March.

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Commenting on the lodgements levels, Loan Market executive director Andrea McNaughton said that brokers have been responding to a surge in market activity amid record-low interest rates and the economy’s recovery from the coronavirus pandemic.

“Market activity is rising, but so is broker market share of loans,” she said.

“Our brokers are set to win more business during the traditionally quieter mid-year period as we anticipate more sellers will come to the market to capture the current price growth and satisfy the demand from buyers.”

The release of Loan Market’s lodgement figures has followed those by Aussie, which this week said that it had hit record lending volumes in March worth about $2 billion in settlements and around $3 billion in lodgements of loan applications.

The Mortgage & Finance Association of Australia (MFAA) recently released statistics, which showed that mortgage brokers had settled a record $107.51 billion in residential home loans between April and September 2020.

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The 11th edition of the Industry Intelligence Service Report (IIS) revealed that this figure was up 24.5 per cent year-on-year, while it was the first time that settlements surpassed the $100-billion figure in a six-month period.

MFAA CEO Mike Felton said the average number of applications lodged per active broker jumped from 19.6 to 21.4, while the national average value of home loans settled per broker rose above $6.5 million for the first time in five years.

Meanwhile, data from the Australian Prudential Regulation Authority showed that the third-party channel wrote $69.5 billion of new bank loans in the three months ending 2020, up 28 per cent on the prior comparative period (when the channel wrote $54.3 billion).

[Related: Loan commitments dip for first time in months]

Loan Market monthly lodgements top $3bn
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