Finance brokers originated at least $46 billion in new home loans during the March 2017 quarter, the largest value of loans for this quarter, new research has revealed.
According to CoreLogic’s research group Comparator, mortgage brokers originated 53.6 per cent of new residential home loans during the March 2017 quarter.
While this is 0.1 per cent down from the same period in 2016, it is the highest value of home loans written in this quarter, which is historically the lowest performing quarter of the calendar year (in terms of value of loans written by brokers).
The figure was arrived at by calculating the value of loans settled through 19 of the leading aggregator groups as a percentage of the ABS Housing Finance commitments.
The Comparator figures are the latest findings to reveal that the value of new home loans is rising despite fewer loans being written.
Last month, the Mortgage & Finance Association of Australia’s (MFAA) Industry Intelligence Service (IIS) found that the value of new and refinanced home loans settled by brokers increased by 1.1 per cent to $92.97 billion over the six months to 30 September, but there were fewer loans actually being written.
In fact, the report noted “evidence of a tapering in the home loan market”, as 256,082 new home loans were settled in the period, a drop of 0.5 per cent on a like-for-like basis on the March 2016 half-year results.
Speaking of the MFAA’s findings last month, MFAA CEO Mike Felton warned that trends from the report show that broker numbers may be “reaching saturation”, with additional numbers operating in a market with softening demand.
However, Mr Felton welcomed the new Comparator figures saying: “We typically see a good relative result for broker market share in the March quarter, and this quarter is particularly important as it follows a period of increased prudential focus on interest-only loans and ongoing attention on investor lending, both of which have had an impact on the broker channel.
"This market share figure reflects the strong consumer outcomes that brokers continue to deliver, further backing up the high satisfaction ratings that brokers receive in other qualitative feedback," Mr Felton added.