More than 60 per cent of residential mortgages were written by brokers between July and September 2020, the highest ever market share level in history.
The mortgage broker channel has recorded its highest ever market share result with brokers settling 60.1 per cent of all residential home loans during the July-September 2020 quarter, according to new data.
The figures come in the latest data released by research group comparator, a CoreLogic business, which was commissioned by the Mortgage & Finance Association of Australia (MFAA).
The data looks at the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments.
The September 2020 result is 5.2 percentage points higher than the equivalent 2019 quarter, 1.0 percentage point higher than the equivalent 2018 quarter, and 0.4 of a percentage point higher than the previous market share record of 59.7 per cent set in March 2019.
As well as breaking a market share record, the value of new settlements recorded in the September 2020 quarter is also the largest by dollar value ever observed.
The top 18 aggregators settled $57.47 billion of new home loans, the report found.
This represents an increase of $11.43 billion – or 24.82 per cent – in the value of new lending when compared year-on-year with the $46.04 billion settled in September 2019.
It also mirrors general trends observed by the Australian Bureau of Statistics, which found that owner-occupier housing loan commitments hit record-high levels in September 2020 (at $17.3 billion), driven by low interest rates and incentives such as the HomeBuilder grant.
The broker market share milestone was achieved despite the proportion of broker-written loans having dropped in the previous quarter (March-June 2020), when COVID-19 was still in its infancy in Australia.
MFAA CEO Mike Felton said the result demonstrates the critical role that brokers play in supporting their customers and the economy, and the impact they have made at a time when they were needed most.
“This phenomenal market share result reflects the tireless support and assistance brokers have provided their customers to help them navigate the challenges posed by the COVID-19 pandemic and the first recession Australia has experienced in 29 years,” Mr Felton said.
“It is also evidence of the ever-increasing trust and confidence that consumers are placing in mortgage brokers as our industry faces the imminent introduction of a best interests duty and related reforms. We are confident that these reforms will continue to differentiate our channel and that our industry can look forward to further increases in market share in the years ahead.
“While I am always proud of the hard work and professionalism of everyone in our industry, the way brokers have overcome their own challenges and vulnerabilities this year – maintained their focus on their customer’s needs while achieving their highest market share result to date – has been nothing short of inspirational,” Mr Felton said.
[Related: Broker market share hits new record high]