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The third-party channel wrote more than $100 billion in mortgages in the June quarter, a record amount, with market share at near-record highs.
New data from the Mortgage and Finance Association of Australia (MFAA) has revealed that mortgage brokers settled a record volume of mortgages in the final few months of the financial year 2024.
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Commissioned by MFAA, the data was provided by research group Comparator (a CoreLogic business), which collected quarterly broker statistics by calculating the value of loans settled by 15 of the leading brokers and aggregators as a percentage of the ABS housing finance commitments.
It found that brokers settled $100.11 billion in the June quarter, $18.64 billion more than in the previous quarter and 12.96 per cent up on the $88.62 billion set in the June 2023 quarter.
This marked the first time brokers have settled more than $100 billion in a quarter.
Moreover, the MFAA data showed that brokers wrote 73.7 per cent of all new residential home loans between April and June 2024 – the second-highest proportion on record.
While the figure was marginally down on the record-high proportion set in the March 2024 quarter (when it was 74.1 per cent), it marked a 6.5 percentage point increase on the 67.2 per cent market share recorded in the same quarter the year prior.
Noting the figures, the CEO of the MFAA, Anja Pannek, said: “Australians are living through a cost-of-living crisis with every dollar counting in household budgets. It’s essential they have the right support and guidance when it comes to their home loan.
“That’s exactly what mortgage brokers provide, and why so many Australians are choosing to talk to their broker.”
Pannek said that the increase in the value of home loans settled by brokers was reflective of a property market that has held strong despite elevated interest rates.
“While there has been a reprieve in increases to the cash rate for several months, property prices are adding to the challenges for people hoping to enter the property market,” she said.
“Mortgage brokers are working every day with their clients to help them get ‘finance’ ready and provide them with a wide range of choices on their home loans.”
The MFAA figures echoed the record-breaking statistics set in FY24 by mortgage brokers. Major aggregators such as AFG and Connective both recently published their financial results for the financial year ended June 2024, with both revealing that their broker members had settled record volumes over the year. However, the two aggregators found that commercial and asset finance lending were growing much faster than residential home lending (albeit from a lower base).
[Related: AFG settles record volume in FY24]
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