Mortgage brokers wrote a record 67 per cent of all new residential home loans in the September quarter, according to MFAA data.
More than two in three home loans (66.9 per cent) were written by mortgage brokers between July and September 2021, according to new statistics released by the Mortgage & Finance Association of Australia (MFAA).
The data was compiled by research group comparator, a CoreLogic business, which calculated the value of loans settled by 18 “of the leading brokers and aggregators” as a percentage of the Australian Bureau of Statistics’ Housing Finance commitments.
According to the analysis, mortgage brokers facilitated a record high of 66.9 per cent of all new home loans in the September quarter. The previous record was achieved in the same quarter last year, when brokers wrote 60.1 per cent of new residential mortgages.
As such, the new figure represents a 6.8 percentage point increase on the previous record high.
It also marks a 7.9 percentage point increase on the previous quarter (when it was 59.0 per cent) and is 12 percentage points higher than it was two years ago.
As well as achieving record share, brokers also settled a record high of $93.42 billion in loans in the quarter, representing a 62.5 per cent year-on-year increase (up from $57.47 billion).
This also marks a 20 per cent increase on the previous record of $77.75 billion, which was set in the June 2021 quarter.
Celebrating the new record, MFAA chief executive Mike Felton said the results were the result of ongoing referrals from satisfied customers, demonstrating that mortgage broker clients were benefiting from both the service their broker is providing them, as well as policy changes made across the sector.
“This market share is appropriate recognition of an industry that has implemented significant reforms which continue to drive consumer trust and confidence in the mortgage broking sector,” Mr Felton said.
“Not only do mortgage brokers provide consumers with choice, experience and convenience, they now provide an unrivalled Best Interests Duty which further differentiates our channel and provides yet another compelling reason to use the services of a mortgage broker.
“What makes this result even more remarkable is that it coincided with extended periods of lockdown in New South Wales, Victoria and other states.”
In addition, Mr Felton commented on the impact of improved lender turnarounds on the broker segment.
“This result also reflects the improvement in lender application approval turnarounds in the third quarter and highlights the type of broker market share that can be achieved when lender turnarounds for broker introduced business are less stifled,” he concluded.
Source: The Adviser