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The MFAA has confirmed mortgage broker market share has reached a new milestone for the March quarter.
The Mortgage and Finance Association of Australia (MFAA) has announced that mortgage brokers wrote 69.6 per cent of all new residential home loans between January and March 2023, hitting a new record for the quarter.
Commissioned by the MFAA, the data was released and compiled by research group Comparator, which collects quarterly broker statistics by calculating the value of loans settled by 18 of the leading brokers and aggregators as a percentage of the ABS housing finance commitments.
This figure revealed an increase of 0.3 percentage points on the December 2022 quarter, which was 69.3 per cent between October and December 2022, as well as a 0.1 percentage point increase on the same period last year.
The March 2023 figures now represent the second-highest broker market share figure on record after surpassing the December and March 2022 quarters, and sitting behind the record 71.7 per cent set in the September 2022 quarter.
Furthermore, the March 2023 quarter showed a 12.1 percentage point increase compared to the 57.5 per cent reached in the same quarter in 2021.
However, settlements decreased year on year, with mortgage brokers settling $78.59 billion in home loans in March 2023, compared to the $88.10 billion settled in March 2022, revealing a 10.8 percentage point fall.
This was also a decrease quarter on quarter, with brokers settling $89.58 billion over the three months to December 2022.
MFAA chief executive Anja Pannek stated the results indicated that mortgage brokers are still key in providing home buyers and refinancers access to a range of choices and competition.
“Mortgage brokers help home buyers understand their options in what is a complex and dynamic mortgage lending environment,” Ms Pannek said.
“The current environment of inflationary pressures, multiple increases to the cash rate, and rising cost of living [are] adding to this complexity and [have] really brought the service mortgage brokers provide in guiding their clients into the fore.”
Ms Pannek added that climbing interest rates limiting borrowing capacity for new borrowers, along with over 800,000 fixed-term home loans with low rates rolling onto higher interest rates, will present a challenging period for mortgage holders and prospective buyers.
“It’s times like this when Australians need expert support to make the best decision for their circumstances and mortgage brokers are meeting this need every day,” Ms Pannek concluded.
[RELATED: MFAA CEO unpacks vision for the future of broking]
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