Diversification levels reach near-record level

The report, drawing data from 11 aggregation groups, covered the period from 1 October 2022 to 31 March 2023 and revealed that mortgage brokers settled $161.79 billion in residential home loans for the six-month period.

While the figure was up over t12 months to March 2023, it represented a decrease of $15.28 billion or 8.63 per cent in new loan settlements over the six-month period.

The last time a decline was observed was four years ago, in the April to September 2019 period.

The decrease in the value of home loan settlements indicated a clear shift and turning point, with softening demand and a decline in market activity driven by increased interest rates and higher inflation, the report highlighted.

In the commercial lending sector, the total value of commercial loans reached $16.4 billion, a slight decrease from the previous six months when $17.2 billion in commercial loans were written by 6,118 brokers, reflecting a decline of 254 brokers or 4.15 per cent.

This was the first period-on-period decline since October 2018 to March 2019.

However, year on year, the number of mortgage brokers writing commercial loans increased by 8.67 per cent to 5,864, marking the second-highest figure on record.

In addition, the total loan book value of commercial lending for mortgage brokers continued to grow, reaching a record high of $73.11 billion during the October 2022 to March 2023 period.

The commercial loan book value increased by $3.06 billion or 4.36 per cent period on period and year on year, the value increased by $6.41 billion or 9.61 per cent.

At the state level, there was variation in the number of mortgage brokers writing commercial loans during the October 2022 to March 2023 period compared to the previous six months.

NSW/ACT recorded the largest decline in numbers, with 166 brokers or 8.06 per cent decrease.

However, the commercial loan book value for NSW/ACT reached a new high of $26.46 billion, an increase of $1.05 billion or 4.12 per cent since the last period.

NSW/ACT brokers settled 38.7 per cent of the national value of home loans.

South Australia recorded the largest proportional decrease with 158 brokers, down 29.31 per cent.

South Australian brokers settled $9.46 billion in home loans, compared to $9.52 billion during the equivalent period in 2021–22, representing a 0.6 per cent decrease.

This led to a total value of commercial lending falling by $48.03 million or 1.52 per cent over the last six months to $3.1 billion.

Western Australia saw a reduction of 73 brokers, marking a 9.62 per cent decline, while its total loan book increased by $140.25 million or 1.94 per cent.

Victoria was the only state to record an increase, growing by 166 brokers or 10.28 per cent.

Victoria also recorded an increase of $650.52 million or 3.03 per cent since the last period, resulting in a total commercial loan book value of $22.13 billion.

The number of brokers writing commercial loans in Queensland remained stable at 1,075, down by two in the previous period.

However, Queensland recorded the highest growth in total commercial loans, amounting to $1.23 billion or 9.80 per cent growth, reaching a total of $13.81 billion.

[Related: Brokers settled record home loans]