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The MFAA has reported the number of mortgage brokers also writing commercial loans has exceeded 6,000 for the first time.
According to the Mortgage and Finance Association of Australia’s (MFAA) Industry Intelligence Service Report (IIS), mortgage brokers who wrote commercial loans during the April to September 2022 period rose to a “new high” of 6,118 brokers.
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This broke the prior record high of 5,396 brokers in the previous six-month period, revealing a year-on-year (YOY) increase of 16.14 per cent (850 brokers) and a 13.38 per cent increase (722 brokers) when compared to the previous six-month period.
In addition, the value of commercial loans settled by mortgage brokers in the April-September 2022 period also hit record high levels at $17.24 billion, up 28.65 per cent YOY or $3.84 billion.
When compared to the previous six-month period, the value of commercial loans rose by 7.89 per cent or $1.26 billion from $15.98 billion.
The total loan book value of commercial lending for mortgage brokers also grew to yet another record high of $70.06 billion during the April-September 2022 period, with a period-on-period value increase of 5.02 per cent ($3.35 billion) and 29.28 per cent YOY ($15.87 billion).
State by state numbers
The number of brokers writing commercial loans at the state level also grew when compared to the previous six-month period.
Leading the growth was NSW/ACT which was up 394 brokers (23.66 per cent), passing the 2,000 mark for the first time. South Australia followed with an increase of 184 brokers (51.83 per cent), Queensland grew by 80 brokers (8.02 per cent) and Victoria grew by 44 brokers (2.80 per cent).
However, despite overall growth in the value of commercial loans settled, only NSW/ACT and Queensland recorded growth on a state level.
Queensland recorded the largest increase in value, reaching $3.57 billion, up 42.86 per cent ($1.07 billion) from the previous period, while NSW values hit $6.16 billion, up 8.01 per cent ($456.49 million).
Victoria, Western Australia, and South Australia all recorded declines in the value of commercial lending at 1.65 per cent ($86.5 million), 7.99 per cent ($141.89 million) and 7.53 per cent ($670 million) respectively.
The total commercial loan book also revealed varied findings, with Queensland recording the highest growth of 26.97 per cent ($2.67 billion) to $12.58 billion, NSW/ACT’s loan book hit $25.41 billion, up 5.01 per cent ($1.21 billion) on the previous period and South Australia grew by 12.91 per cent ($360.41 million).
Victoria was the only state to record a decrease in total loan book value, with a fall of 3.87 per cent ($864.33 million) while Western Australia recorded no change.
If you want to find out more about commercial and SME lending, subscribe to the Adviser to get the May edition of our magazine.
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