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The MFAA has released a report that found the number of brokers has hit new records.
The latest Industry Intelligence Service (IIS) report released by the Mortgage and Finance Association of Australia (MFAA) has found that the number of brokers has exceeded 19,000, at 19,236, (up 5.2 per cent) for the first time since IIS research commenced.
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The 15th edition of this report covered the six-month period from 1 April 2022 to 30 September 2022, drawing on data supplied by 11 aggregator brands to provide industry and broker demographic and performance data.
MFAA chief executive Anja Pannek said the report highlighted that mortgage and finance brokers continued to be relied on by Australia’s home buyers and business owners in the ongoing rising interest rate environment.
“We know that for many borrowers, the consecutive rate rises that occurred during the period the report covers were the first time they have experienced upwards movement in the cash rate,” Ms Pannek said.
“We’ve heard from our members that in the current environment clients are proactively reaching out to their broker to understand their options.”
Other insights from the IIS have revealed that diversification of mortgage broking businesses into commercial lending has accelerated. Over 6,000 mortgage brokers now operate in this part of the market, marking an “all-time record”.
Ms Pannek stated that commercial and equipment finance remains a “significant opportunity” for mortgage brokers to broaden their service offering to both existing home loan clients and new clients.
Additionally, the national average total broker remuneration (prior to costs) was $195,356, which included an average of $123,803 in upfront commissions and $71,553 in average trail commissions.
According to the report, the proportion of female brokers was at the lowest level since the measure has been tracked at 25.4 per cent, down slightly from 25.5 per cent.
“It’s essential for the long-term sustainability and relevance of our industry that we nurture an environment that is welcoming to people from all walks of life,” Ms Pannek said.
“The continued under-representation of women in mortgage and finance broking is an issue we are continuing to work with industry on and provide resources to help businesses take positive steps on diversity and inclusion.”
Furthermore, the market share of the major bank lender segment increased to 47.2 per cent, up 2.2 percentage points year-on-year in the September 2022 quarter, following two consecutive quarters of decline.
During this six-month period, the share of mortgage written by brokers exceeded 70 per cent for the first time at 71.7 per cent in the September 2022 quarter.
[RELATED: Broker market share breaks 70% milestone]
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