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Brokers have increased their market share to a new high of 46.4 per cent of all home loans written, according to independent research group Comparator.
Phil Naylor, chief executive officer of the MFAA, said he expects this trend to continue.
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“We expect that brokers and aggregator members of the MFAA will provide more than 50 per cent of all home loans written in Australia over the next two years,” he said.
Mr Naylor attributed the growth to the improved overall service now offered by brokers.
“I think there is much more focus on being the client's trusted adviser rather than merely being involved in the transaction,” he said. “There has been a greater recognition by consumers of the broker advice position. We think that’s really been enhanced over the last quarter or so.”
According to Mr Naylor, the third party distribution channel is close to breaking through the $100 billion barrier for new loans written this calendar year and is expected to reach $120 billion by year’s end, representing a new milestone.
“Mortgage brokers and aggregators are well on course to smash the 2012 record lending figures, with two big members of the MFAA already reporting record figures for October,” Mr Naylor said.
A strong real estate market is driving increased activity in the mortgage market. According to RP Data research, the Sydney market has recorded the largest growth, with home values up 13.3 per cent for the year to date, while the average across the five largest capital city markets is up 8.5 per cent.
This represents a national 6.6 per cent month on month increase (trend) in mortgage market activity in November.
