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Mortgage brokers settled over $180 billion in residential home loans in the six-month period from April to September 2022, breaking previous records.
The latest Industry Intelligence Service (IIS) report released by the Mortgage and Finance Association of Australia (MFAA) has revealed that mortgage brokers settled $181.26 billion in residential home loans in the six-month period from April to September 2022.
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According to MFAA, this was the highest six-month value recorded since the report has been issued, marking the first time that settlements exceeded $180 billion and $4.19 billion more than the previous record high set in the previous six-month period.
The new record marked a year-on-year increase of 9.2 per cent (or $15.30 billion) in new loan settlements.
When looking at the full-year figures, brokers settled a record of $376.26 billion in home loans in the 12 months to September 2022, an increase of 25.80 per cent or $76.74 billion when compared year-on-year.
According to the report, this was the highest value of new home loan settlements observed over a 12-month period to date and marked the first time that settlements exceeded $300 billion.
However, new loan settlements during the September 2022 quarter declined to $94.42 billion, falling from the record high of $96.09 billion recorded in the June 2022 quarter.
Despite this, it was still the third-largest settlements value recorded for any quarter, representing an increase of 1.08 per cent ($1 billion) when compared to the $93.42 billion in September 2021.
The report noted that September quarters usually experience year-on-year increases when compared to the June quarters, however, the decrease observed in September 2022 was the first time it fell when compared to June 2022, which suggested that a peak of new loan settlements may have been reached in the June 2022 quarter.
Broker numbers break more records
The record settlement figures come as the broker population increases.
The IIS report revealed that the number of brokers nationally has surpassed 19,000, rising 5.2 per cent to 19,236 for the first time since the research began.
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.”
[RELATED: Broker numbers increase to new record]
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