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There are now more mortgage brokers than ever, with new stats showing a 3.3 per cent increase in the broker population.
New statistics released by the Mortgage & Finance Association of Australia (MFAA) have revealed that the number of people becoming a mortgage broker has increased, with the latest stats showing that the broker population now totals a record 19,872.
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The statistics, which were taken over the period from April to September 2023, are the most recent industry figures relating to the broker population.
According to the 17th edition of the Industry Intelligence Service (IIS) report, the number of brokers grew by 636 or 3.3 per cent year on year (when it was 19,236).
This is the third consecutive quarter that broker numbers have been over 19,000.
The largest number of brokers can be found in NSW/ACT (7,401, as at September 2023), followed by Victoria (5,889), Queensland (3,242), Western Australia (1,990) and South Australia (1,205).
The largest growth in broker numbers was in Queensland, up 5.2 per cent over the previous six-month period and 0.4 percentage points on the prior comparative period, followed by NSW/ACT (up 3.2 per cent on the previous six months and 0.2 percentage points over the year).
There were just 111 brokers in Tasmania and 34 brokers in the Northern Territory at the time – a smaller number than in previous report periods.
However, Western Australia recorded its ninth consecutive period of decline in broker numbers when looking at numbers period on period.
Noting the broker population figures, MFAA CEO Anja Pannek said: “Our industry is growing, with more mortgage brokers than ever before, and positive shifts recorded across a number of aspects of the industry during the period covered in the report.
“The choice and competition mortgage brokers have brought to the home lending market to the benefit of consumers shines through in this data.”
The new figures mean that there is now one broker for every 1,322 people in Australia.
Victoria continues to have the highest concentration of brokers per capita, followed by NSW/ACT and Western Australia.
The NT continues to have the lowest broker-consumer ratio in Australia.
The IIS report also revealed that settlement values for mortgage broker-originated home loans surpassed $300 billion for a 12-month period for the second time, at $350.63 billion to September 2023.
However, the conversion rate of home loan applications to settlements dropped, which the association said could indicate that serviceability challenges are taking a toll on prospective home buyers seeking finance.
“While overall home loan applications are up across most of the country, we hear consistently from our members that serviceability has been a challenge for their clients as they adjust to current interest rate levels,” Pannek said.
Conversion rates recorded a second consecutive six-month period of decline, with a 9.2 percentage point dip year on year and falling below 80 per cent for the first time since 2021.
“The downward shift in conversion rates highlights that it’s harder to get deals through, with much more work required on the part of mortgage brokers to find the right solution for their clients,” the MFAA CEO said.
The new report comes as the MFAA launches a consumer campaign to promote the reasons why a prospective home buyers should first see a mortgage broker.
The campaign - which will run across "targeted social and digital platforms that homeowners typically visit" - will be active for six weeks in August and September in the lead-up to the traditional Spring selling season.
It guides prospective homebuyers to the MFAA’s refreshed Find a Broker site, to help connect borrowers with an MFAA-accredited broker nearby.
In the campaign, the MFAA highlights that brokers are required to maintain the highest level of qualifications and ongoing professional development in the industry – so consumers can be confident they’re receiving professional service.
Pannek commented: “We believe this campaign will strengthen the visibility and promoting the strong reputation of our broker members, providing a significant boost in connecting them with clients actively seeking trustworthy and skilled professionals,”
[Related: Broker market share hits new record high]
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