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ISCOVER
Staff Reporter
Australia’s brokerage groups have increased their share of the mortgage market, writing 18 per cent more business than this time last year.
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According to new industry data from MISC (Market Intelligence Strategy Centre), Australia’s broker groups increased their lending activity by 18 per cent, despite facing a 26 per cent drop in the number of brokerages.
This time last year, there were more than 160 brokerage groups operating in the industry; this number has since dropped to 119, MISC data show.
A MISC spokesperson attributed the drop in brokerage numbers to a flat housing market, new government regulations and lower commissions.
But while the industry is obviously going through a period of heavy consolidation, MFAA chief executive officer Phil Naylor said this was not necessarily a bad thing for brokers themselves.
“I still believe good brokers are entitled to be positive about the market,” he told The Adviser.
Mr Naylor added that while market conditions were unfavourable, consumer recognition for the role brokers play has increased.
“Consumers are a lot more aware of what they expect from brokers,” he said. “All our research shows that consumers are more satisfied with a broker than by going directly to a lender.”
