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NAB Broker general manager distribution John Flavell believes that brokers can expect a greater share of the mortgage market as long as banks continue to back the channel.
Speaking at a media briefing this week, Mr Flavell said that if a consumer looks at an industry that is regulated, licensed and has recourse, then they should have confidence in dealing with it.
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Mr Flavell also said brokers are seeing greater levels of retention with their clients and this is helping to increase their overall share of the market, whereas in the past they may have had a disproportionally high number of first time buyers.
But while Mr Flavell believes licensing will help the broker industry to grow at consumer level, he stressed that lender backing was also critical to ensuring future growth for brokers.
"It's also critical that lenders support, assist and promote the use of brokers if the channel is to continue to grow," Mr Flavell said.
"NAB has invested heavily in promoting brokers in our above the line advertising and we'll continue to do that.
"There has been a lot of fickle behaviour from some lenders in recent times – one minute they're in, the next they're out."
Mr Flavell's comments have been backed by the non-bank sector, with Liberty Network Services general manager Brendan O'Donnell stating that with the right support and right proposition, brokers could grow their market share beyond 50 per cent.
"Currently, brokers write approximately 42 per cent of all residential mortgages. I think they should look to grow this number to 45 per cent before the end of the calendar year," Mr O'Donnell said.
"From there, I think the broker channel should strive towards 50 per cent market share and there is no doubt in my mind that the industry will achieve this within the next three years."
