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The former ASIC chairman has said he believes broker market share will surpass 80 per cent.
The former chairman of the financial services regulator and current chairman of aggregator Australian Finance Group (AFG), Greg Medcraft, has said he believes brokers will continue to grow market share.
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Speaking at the 2024 AGM for AFG in Perth on Friday (18 October), Medcraft said that market conditions have been “driving the expansion of the mortgage broking channel, bringing renewed optimism for growth and opportunities in the year ahead”.
He told shareholders: “With the closure of over 2,100 bank branches between 2017 and 2023, mortgage brokers, delivering value as a variable cost base for lenders, continue to provide a critical solution and service to banks and Australian borrowers. They have become essential community partners, now handling over 74 per cent of new home loans in Australia.
“We expect broker market share to surpass 80 per cent, with one in 10 home loans in this country currently arranged by an AFG broker, we expect this number to grow.”
The chairman said that AFG had added to its broker numbers over the year, with the aggregator now having more than 4,000 brokers – a record high.
Its residential loan book now totals over $200 billion.
“As our broker market share continues to rise, we are strategically positioned to expand further and enhance competition and choice within the Australian lending market,” Medcraft said, adding his personal thanks to AFG brokers for “the value they deliver to customers”.
AFG CEO David Bailey echoed this sentiment, telling AGM attendees that the Australian housing market “remained resilient” in the financial year 2024, supported by key economic factors such as population growth, housing demand, and steady employment.
“This resilience has positively impacted the mortgage broking market, where AFG’s broker network continues to grow, and our fundamentals remain strong,” he said, highlighting that the group had seen residential settlements grow 3 per cent over the financial year, with final quarter lodgements being the highest Q4 on record and the first quarter of the new financial year also setting a new quarterly record.
Bailey said that the group would continue to focus on growing its distribution network, delivering higher-margin products, and harnessing technology to be “more agile, competitive, and profitable”.
He joined Medcraft in thanking brokers as well as AFG employees, customers, lending partners, and shareholders for their support.
[Related: Broker lodgements near record high: AFG]
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