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Mortgage brokers continue to break records when it comes to home loans, according to the latest data by the MFAA.
This result from the latest Industry Intelligence Service report (IIS), confirms the fact that broker market share continues to break records.
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The 14th edition of the IIS report flags recent findings from research group Comparator (commissioned by the Mortgage and Finance Association of Australia (MFAA)) that broker share continues to rise.
The report drew upon data supplied by 11 of the industry’s leading aggregator brands and provided broker, industry performance and demographic data between 1 October 2021 and 31 March 2022.
As previously reported, brokers were responsible for 69.5 per cent of all new residential home loans in the March 2022 quarter. This was a record-high figure.
Moreover, brokers settled the largest value of home loans on record in the June 2022 quarter; a significant 9 percentage point increase compared to 59 per cent achieved in the same quarter in 2021 and 11 percentage point increase on the 57 per cent recorded in the June 2020 quarter.
The value of home loans settled by mortgage brokers reached a new peak at $96.08 billion during the quarter. Not only is this the highest value of broker-originated home loan settlements for any quarter on record, but it also represents a 23.58 per cent year-on-year increase and an increase of 81.97 per cent compared to the equivalent quarter in 2020.
“This is an incredible result for mortgage brokers, particularly in an environment of rising interest rates and a slowdown in the property market,” said MFAA chief executive Anja Pannek.
“It is clear from the strong growth in the proportion of home loans written by mortgage brokers over the past few years that customers value the service mortgage brokers offer.
“Market conditions like we are seeing now further highlight the benefits of using a mortgage broker who can explain the array of different lenders, products and options available to their clients.”
Ms Pannek commented that these results further demonstrate ongoing increases in consumer trust and confidence in the industry, following five years of successful reform.
The raw numbers in focus
The IIS report also found that the average total broker remuneration — prior to costs — rose 20.78 per cent year-on-year to $195,534 — a figure derived from an average in upfront commissions of $123,892 and $71,642 in average trail commissions.
The major banks and regional banks owned or aligned to the major banks both saw a drop in market share during the March quarter, reducing to 42.6 per cent, or 3.2 percentage points, and 10.6 per cent, or 1.2 percentage points, respectively.
“The IIS highlights the continued customer focus of the industry, with brokers at the forefront in finding lending solutions for Australian homebuyers and business owners,” said Ms Pannek.
National body the MFAA represents finance brokers, mortgage managers, lenders, aggregator/broking groups and other industry participants, assisting them to develop, foster, and promote the mortgage and finance industry in Australia.
[Related: Clawbacks v cashbacks: New MFAA CEO speaks]
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