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While the proportion of broker-originated mortgages has dropped marginally, the chief executive of the MFAA has said the outlook for the channel remains strong.
New data from the Mortgage and Finance Association of Australia (MFAA) has revealed that mortgage brokers wrote 67.2 per cent of all new residential home loans between April and June 2023.
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Commissioned by MFAA, the data was provided by research group Comparator, a CoreLogic business, 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.
The data found that mortgage brokers continue to write more than two-thirds (67.2 per cent) of Australian home loans.
The 67.2 per cent figure for the June quarter was a 0.8 percentage point decrease compared to the June 2022 quarter, but that result (68 per cent), was the highest percentage ever recorded for a June quarter.
The result was a slight decrease from the March 2023 quarter, where mortgage brokers wrote 69.3 per cent of new residential home loans, a record for that quarter.
In dollar terms, mortgage brokers settled $88.62 billion in home loans over the June quarter, a 7.8 percentage point decrease from $96.08 billion settled in the June 2022 quarter.
When compared quarter on quarter though, the value of home loans settled by mortgage brokers increased $10.03 billion following three consecutive periods of decline, according to the MFAA.
Moreover, the latest result is an 8.2 percentage point increase from 59 per cent market share in the June 2021 quarter, with the ongoing uptick in refinancing volumes and borrower uncertainty over rate rises expected to bolster the results into the future.
MFAA CEO Anja Pannek said the outlook for the industry “remains strong”.
Ms Pannek stated: “Mortgage brokers continued to write more than two out of three home loans during the June 2023 quarter, and while mortgage broker market share did dip slightly, this is consistent with normal fluctuations we have observed over the nearly 11 years we have been tracking the measure.
“Mortgage brokers continue to provide essential expertise and support to home buyers, and those refinancing.
“Indeed, our recent member survey showed that the so-called refinancing boom has brought new clients to the broker channel as fixed-rate terms end and borrowers navigate their options in the current economic environment. With over 1 million fixed-rate terms still to end this year and into 2024, this is a huge opportunity for mortgage brokers.”
Ms Pannek also emphasised the positive growth in the mortgage broker market share over an extended period of time having only been 53.9 per cent in 2018 and 44.9 per cent in 2013.
She stated: “The trajectory of mortgage broker market share is one that has been well-earned through mortgage brokers’ dedication to their clients and the professional manner in which the industry has implemented reforms, particularly the best interests duty which has only served to strengthen the confidence borrowers have in their broker.”
Ms Pannek’s confidence in the potential further growth of the broker industry came after it found approximately 95 per cent of brokers had seen refinancing borrowers use the channel for the first time.
[Related: Brokers see uptick in new refinancing clients: MFAA]
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