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Mortgage brokers are driving competition in the mortgage market, according to new home loan industry market share figures.
The figures, produced by Comparator for the Mortgage & Finance Association of Australia (MFAA), show mortgage brokers are now providing 23 per cent of all home loans to borrowers on behalf of smaller banks and other lenders.
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The major banks currently hold 80.2 per cent of overall market share but just 77 per cent of the market through brokers.
CEO of the MFAA, Phil Naylor, said there is no doubt mortgage brokers are now firmly established as the key facilitators of competition in the home loans market.
“The figures clearly show brokers are crucial in enhancing competition and consumer choice as regional banks, independent and international banks and non-bank lenders are sharpening their offerings and using brokers to attract consumers,” Mr Naylor said.
Independent regional banks have 9.1 per cent of the broker home loan market, followed by international banks (4.5 per cent); brokers’ white label loans (3.1 per cent); other independent lenders (2.6 per cent); non-bank lenders (2.5 per cent); and credit unions, building societies and mutuals (1.3 per cent).
