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ISCOVER
Staff Reporter
Research conducted by the Australian Bureau of Statistics has revealed mortgage brokers currently account for 42 per cent of all loans written.
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According to the data, mortgage brokers and aggregators were the source of $23.4 billion worth of home lending during the March quarter, with annualised lending volumes of close to $100 billion.
Mortgage brokers and aggregators have lifted dramatically their share of the home lending from 25 per cent 10 years ago.
It is the first time the mortgage industry has commissioned a detailed market share study by comparator, which generated its data directly from 17 of the leading mortgage broking/aggregator groups across Australia – believed to represent more than 95 per cent of the volume in this distribution channel.
Mortgage and Finance Association of Australia chief executive Phil Naylor said the data proves the third party distribution channel is not only viable but well received.
“Not only are they helping first home buyers enter the market, as well as investors, but they promote greater customer choice and competition in the market,” Mr Naylor said.
“Consumers are choosing brokers in the rapidly changing market, in which there is now a blinding array of mortgage products.”
Representing 11,200 members, the MFAA expects hundreds of jobs to be added in the mortgage broking sector over the coming years as more customers come to accept and use their very compelling service.
“We expect that the mortgage broker share of the market should expand further this year. We are seeing quite a few of our corporate members looking to further expand their mortgage broking operations and broaden their product offerings.”
