Brokers settle $9m in 6 months on average: MFAA

The report, which draws on data supplied by 11 leading aggregator brands, provided broker and industry performance and demographic data for the six-month period of 1 April 2021 to 30 September 2021. 

The stats showed that the broker channel settled $165.96 billion in residential home loans for the six-month period, the highest value recorded for any period since the MFAA commenced reporting in 2015, up 54.4 per cent year-on-year.

Indeed, as previously announced, brokers facilitated a record 66.9 per cent of all new residential mortgages during the final quarter of that six-month period. The September quarter recorded the largest quarterly settlement figure to date too, at $93.42 billion over the three-month period.

The MFAA report also revealed that the average value of loans settled per broker over a six-month period has hit its highest value to date.

The latest stats, for the six months to September 2021, showed that brokers settled more than $9 million each.

On average, brokers were settling $9,076,311 in the April-September period – up markedly on previous highs.  

Year-on-year, the average value of new home loans settled per broker represents an increase of $2,556,461 or 39.21 per cent, while period-on-period, the average value of new home loans settled grew by $1,838,602 or 25.40 per cent.

The MFAA report noted: “This continues significant year-on year and period-on-period increases, and suggests that brokers are settling higher value loans, which in turn has significantly increased the national average.”

When looking at loans settled by only the “active” brokers operating in the period (and not the whole population of brokers), this number increased to an average of $10.6 million per broker for the six-month period.

Noting the strength of the broker channel over the six months between April-September 2021, chief executive Mike Felton wrote in the foreword: “The average number of applications lodged per active broker rose from 21.4 to 23.6, while the national average value of home loans settled per broker reached $9.1 million, the highest value since IIS records began. “

He continued: “The national broker residential loan book grew by a further 15.9 per cent compared to the same period a year ago. 

“Australia’s total loan book value now sits at $853.9 billion.

“Brokers have continued to show that they are here to support customers seamlessly throughout these periods of disruption and changes in business practices. This research shows consumers recognise, and appreciate, this continuity of service. 

“This was also the first full reporting period brokers were operating under the full suite of reforms implemented over the past two years, including the unrivalled Best Interests Duty, giving consumers even greater trust and confidence in the broker channel.” 

[Related: Brokers write two-thirds of Australian mortgages]