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The number of mortgage brokers writing commercial loans has risen significantly in a sign that more brokers may be diversifying to offer commercial lending, according to the MFAA.
The value of commercial loans settled by mortgage brokers has reached its highest-ever value, in a signal that more brokers may be expanding to offer commercial lending, according to the Mortgage & Finance Association of Australia (MFAA).
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According to the MFAA’s newly released Industry Intelligence Service Report 18th edition last week, the value of commercial loans settled by mortgage brokers reached a record $20.31 billion in the period between October 2023 and March 2024, up 23.12 per cent year on year.
More mortgage brokers are also writing commercial loans.
In the same period, 6,755 brokers wrote commercial loans, a 19.47 per cent jump on the previous period and up 15.19 per cent year on year.
The proportion of mortgage brokers also writing commercial loans edged up to 30.66 per cent, from 28.45 per cent in the prior period.
All states saw period-on period growth in the number of mortgage brokers also writing commercial loans.
The total book value of commercial lending for mortgage brokers continued to grow, reaching a record high of $83.92 billion between October 2023 and March 2024. That equated to a 7.43 per cent jump on the previous six months.
MFAA CEO Anja Pannek said that it was great to see more brokers diversifying and embracing opportunities to service a greater range of customer needs by offering commercial lending, as well as asset and equipment and business finance.
The total commercial loan book increased across all states.
NSW and the ACT’s book value reached a new high of $29.33 billion, up 7 per cent compared to the previous period.
In Victoria, the commercial loan book rose 8.76 per cent to $26.07 billion.
Queensland saw growth of $1.2 billion, or 7.80 per cent, to $16.58 billion.
Western Australia grew by 4.77 per cent, while South Australia’s commercial loan book increased 7.12 per cent over the period.
In a sign of changing gender representation in broking, the same research also showed that the number of female brokers in the industry increased to its highest level since the April 2018 to September 2018 period.
However, compared to the overall broker population, the percentage of female brokers was 26.7 per cent, down 0.2 percentage points year on year.
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