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Mortgage brokers continue to write more than two-thirds of residential home loans and settled a record $95.65 billion in the final quarter of 2021.
Borrowers continue to flock to brokers, new statistics released by the Mortgage & Finance Association of Australia (MFAA) have shown, with 66.5 per cent of all new residential loans written between October and December 2021 facilitated through the third-party channel.
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Analysing 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, research group comparator (a CoreLogic business) found that broker market share increased 7.1 percentage points on the same quarter last year (when market share was 59.4 per cent).
This marked a new record for the channel for the December quarter and is just 0.4 percentage points below the all-time record of 66.9 per cent, achieved in the September quarter last year.
According to the analysis, the total value of mortgages settled through brokers in the December quarter reached $95.65 billion, a new record high.
The figure represents a 49.22 per cent year-on-year increase on the $64.10 billion settled in the same quarter in 2020.
Noting the results, MFAA chief executive officer Mike Felton said the results reflect a continued vote of consumer confidence in the service that mortgage brokers provide, and the competition and choice the broker channel brings to the home loan market.
“To have our industry grow almost 50 per cent year-on-year in terms of the volume of loans settled is a phenomenal result and sends a powerful message as to the state of our industry following the significant changes made,” said Mr Felton.
“The combination of reforms implemented – alongside brokers’ dedication to their customers – continues to produce strong consumer outcomes driving trust and confidence and reinforcing that mortgage broking is a force for good that supports competition and choice that is critical to the Australian economy.”
The MFAA figures come as several aggregators and lenders report record-breaking mortgage settlements for the calendar year 2021.
Connective recently revealed that its brokers settled a total of $74.9 billion home loans last year, while AFG's lodgements hit record highs last year and its half-year results for FY22 show that settlements were up by 47 per cent to $30.8 billion
The broker channel has also been praised by players on both ends of the political spectrum.
Australia’s former and longest serving treasurer, Peter Costello (serving 1996-2007) - a former Liberal party member - recently highlighted the “important” role that brokers play in the “financial architecture” of Australia, while Labor MP Stephen Jones, the shadow financial services minister and shadow assistant treasurer told The Adviser of his positive experience using a broker after having been a direct customer for nearly 20 years.
[Related: Brokers write two-thirds of Australian mortgages]
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