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Jessica Darnbrough
Kevin Matthews, AFG’s executive director, has forecast that one in two loans will soon be written by brokers in the wake of the banks' decoupling with the RBA cash rate.
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Speaking at an aggregators luncheon hosted by The Adviser in Sydney yesterday which was attended by senior representative of Australia's biggest groups, Mr Matthews said borrowers were becoming increasingly confused about their mortgage options, which is driving them to seek the advice of brokers.
“Broker share is growing very quickly for a number of reasons.
"The most recent reason is the out of cycle rate movements by Australia’s lenders. The banks are starting to move out of cycle and the government is confusing everybody by slamming the banks in the media for doing so.
"As such, people are now less likely to take what they are offered and more likely to shop around, ask questions, and visit a broker,” Mr Matthews said.
“I have no doubt that the industry will hit 50 per cent market share this year.”
Mr Matthews said AFG had seen its market share grow in recent months, as has Aussie and Mortgage Choice.
“I’m sure everyone has seen their market share grow recently. And that growth has nothing to do with the banning of DEFs we saw last year. The fact is, there is a lot of confusion in the market and borrowers feel comfortable asking for advice from a trusted professional.”
