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ISCOVER
Jessica Darnbrough
Competition between lenders has helped the third party distribution channel grow its mortgage market share.
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According to new research by Market Intelligence Strategy Centre, the number of mortgages written by brokers grew 7 per cent in the December quarter.
The result marks the first quarter of market share growth for the channel in over a year.
According to a statement by MISC, the strong result can be attributed to a number of factors including the recent rate relief; growing positive consumer sentiment towards brokers and increased competition between Australia’s lenders.
But brokers have been the only ones to benefit from increased competition, Australia’s smaller lenders also enjoyed a stellar quarter.
Smaller lenders, excluding Australia’s regional and major banks, grew their share of all lending volumes to nearly 14 per cent in the quarter from 11 per cent previously.
While the major banks collectively provided marginal growth on the September quarter, smaller lenders found they were better placed to compete more aggressively following on the heels of more than $6 billion in new RMBS capital raisings in the previous quarter.
Smaller lenders, defined by the MISC broker pool, include specialist banks as well as both the credit unions and building societies and those active originators and mortgage managers.
