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ISCOVER
Staff Reporter
The third party distribution channel continued to enjoy a strong percentage of the market throughout the March quarter, new data has revealed.
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According to Comparator, mortgage brokers wrote more than 40 per cent of all home loans processed in the March quarter and are on track to break through the $100 billion barrier written within a single calendar year.
MFAA chief executive Phil Naylor said brokers continue to lift their presence as a highly effective distribution channel for both large and small lenders, well supported by borrowers.
“If we extrapolate the results of the 16 aggregators to the whole broker channel, we believe the total market share of the mortgage broker channel is now around 45 per cent,” he said.
“The major lenders continue to invest in the broker model, with ANZ reporting last week that brokers held about 46 per cent of the loans written by the major four banks.
“These market share numbers compare very favourably with those overseas, with Canada at about 27 per cent; the United States under 40 per cent and New Zealand at 25 per cent, while the UK penetration of brokers still sits at about 50 per cent.”
While brokers’ share of the market has slipped in other countries, Australian brokers continue to build momentum as a vital channel for lenders and borrowers.
