Login
ISCOVER
Fresh figures have revealed that the percentage of new home loans originated by mortgage brokers grew to its highest level on record during the March quarter.
According to CoreLogic’s research group, comparator, mortgage brokers originated at least $43.4 billion of new home loans during the quarter – up from $40.6 billion during the corresponding period last year.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
This puts broker market share at 53.7 per cent of new residential home loans, representing an increase from 51.9 per cent in the March 2015 quarter and the highest percentage ever recorded by comparator.
Commenting on the result, Mortgage Choice chief executive John Flavell said constant changes to policy and pricing have made the home loan market more complex than ever, further increasing the appeal of the broker.
“This growing complexity has helped to improve the broker proposition,” he said.
“Brokers are experts in the mortgage market. They know exactly what is happening in the market and how certain changes may affect certain borrowers. This level of expertise and knowledge means mortgage brokers are perfectly placed to help borrowers find the right home loan for their needs – something borrowers are acutely aware of.
“Borrowers now, more than ever before, understand and respect the role and value of a mortgage broker.”
Mr Flavell said despite concerns about digital disruption, and the recent introduction of online platforms such as Hero BroKer potentially putting pressure on broker market share, he expects consumers to increasingly enlist the assistance of trusted advisers.
“Technology and digital advancements shouldn’t be considered a threat, but an opportunity,” he said.
“At Mortgage Choice, we see digital advancement as an opportunity to embrace new technologies, new channels, and new offerings – all of which can deliver increased value to our customers.
“Mostly, technological change is driven by demand – demand from borrowers. As such, I think it is important for brokers to embrace change and see it as a way to enhance the customer experience. If you don’t embrace change, you run the risk of being left behind.”
Mr Flavell said he would not be surprised to see broker market share continue to grow further over the next 12 months.
“What percentage of the pie brokers will one day account for is anyone’s guess, but over the short to medium term I would expect broker share to grow more and more,” he said.
“The home loan market is incredibly competitive and complex, which is helping to strengthen the broker proposition and the industry’s market share.
“Brokers deliver real value to borrowers and, as long as this remains the case – which it will – we can expect broker share to grow.”
[Related: Industry confused by new mortgage platform]
