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Borrowers are increasingly opting to secure finance through the broker channel, with new statistics reporting a sharp rise in broker market share.
According to the latest data released by research group comparator, a CoreLogic business, mortgage brokers settled 59.1 per cent of all residential home loans in the September quarter 2018, up from 53.6 per cent in the same quarter of 2017 – the largest year-on-year increase for any quarter over the last four years.
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The data also revealed that settled broker volumes dropped between the September 2017 and September 2018 quarters from $51.77 billion to $50.19 billion, a 3 per cent fall; however, the drop came amid an overall market decline of 8.5 per cent from $98.79 billion to $90.33 billion over the same period.
Reflecting on the result, CEO of the Mortgage and Finance Association of Australia (MFAAA) Mike Felton said: “This result has occurred during a period of severe credit tightening with brokers stepping in to provide critical assistance in the redistribution of credit demand for those seeking home lending.
“As banks have persisted in making it more difficult to secure a loan, turning many would-be borrowers away, consumers have continued to increasingly utilise the broker channel for experience, expertise and greater market choice to secure access to credit.”
He continued: “In addition to providing customers access to a panel of 34 lenders on average, brokers are ideally positioned to help customers, especially those with more complex lending scenarios, to understand the ever-evolving application process and provide the information necessary to meet changing lender requirements.
“Mortgage brokers continue to offer choice to consumers and ensure credit continues to flow, which is of systemic importance to the housing market and a strong economy.”
[Related: Market share rise proof that ‘commissions work’, says non-bank]
