Login
ISCOVER
By: Staff Reporter
Mortgage broker loan volumes dropped by 13 per cent in the December quarter, data from the Market Intelligence Strategy Centre (MISC) has found.
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.
According to MISC, the drop in broker business was not unexpected due to the wind back in government stimulus to First Home Buyers, tighter lending restrictions and three consecutive rate rises.
“Further, it comes on the back of an unusual September quarter, which was heavily ‘FHOG grant influenced’,” the MISC report read.
And while broker volumes dropped, so did the majors market share.
Data from MISC’s broker and bank lender pool members showed the big four banks’ market share dropped from 72.2 per cent in the September quarter to just 69.8 per cent in the December quarter – the lowest level in five quarters.
Regional banks capitalised on the majors’ decreasing market share, and accordingly grew their share from 20.6 per cent to 24 per cent – representing the third consecutive share gain in successive quarters over the last year.
The report also found that smaller non-bank lenders are beginning to re-emerge into the channel as some of the larger lenders provide seed funding for new lenders, and niche players develop specific, broker only, offerings.
