the adviser logo

Broker share continues its rising trajectory

by Annie Kane4 minute read

The mortgage broker channel has recorded its highest ever residential home loan market share for the April-June 2019 quarter, despite it traditionally being a low point in the lending calendar.

According to the latest data released by research group comparator, a CoreLogic business, and commissioned by the Mortgage & Finance Association of Australia (MFAA), the share of broker-originated loans approved in the three months ending 30 June 2019 came in at 55.8 per cent, setting another record quarter for the channel.

The new figures, which calculate the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments, showed that the popularity of the third-party channel continues to grow, with the share being 1.9 percentage points higher than the equivalent 2018 quarter and 4.3 percentage points higher than the equivalent 2017 quarter.

Speaking of the figures, MFAA CEO Mike Felton said the result continued the year-on-year trend of growth in market share for broker-originated lending and showed the unwavering customer trust and confidence in the broker proposition, given that the Easter quarter is traditionally a seasonal low point in the lending calendar and that lender appetite has reduced.


Mr Felton said: “This is an outstanding result for the broker channel, particularly as it was achieved during the seasonal low point for broker market share. It once again demonstrates the key role brokers play in ensuring that their customers continue to have access to credit during tight market conditions.”

However, despite the strong data on broker market share, the overall value of lending through the broker channel was down $7.22 billion to $42.29 billion year-on-year, compared to $49.51 billion settled in April-June 2018, a decline of 14.6 per cent.

This reflects a similar trend in the overall lending market, which has volumes drop by 17.5 per cent – with the proprietary channel declining by more than a fifth (20.5 per cent), according to the MFAA.

“Despite the decline in the value of residential lending for this period, brokers have maintained their position as consumer champions,” Mr Felton said.

“This result clearly shows that mortgage brokers are able to remain focused on their clients as they continue to deliver choice and access to credit for Australian consumers.”

The MFAA/comparator figures build on the trend seen in the end of financial year results for the sector, with lenders and brokerages reporting a drop in settlements for the year ending 30 June 2019.

[Related: ]

arrow up home mb

Annie Kane

Annie Kane


Annie Kane is the editor of The Adviser and Mortgage Business.


You need to be a member to post comments. Register for free today


Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

Daniel Newell Gedda

Specialist lender LoanU rebrands to Gedda

The personal and auto loan provider LoanU, which specialises in helping Australians with impaired credit histories...

tech tools

CBA introduces AI technology to combat scams

New figures released by the competition watchdog this week have revealed that Australians lost more than $2 billion...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more