Login
ISCOVER
The value of settled commercial loans written by brokers has hit its highest level yet, reaching $13.4 billion, according to the MFAA.
In its 13th edition of its Industry Intelligence Service Report (IIS), the Mortgage and Finance Association of Australia (MFAA) revealed that a record number of brokers are now writing commercial loans, with a new record value of settled commercial loans also being reached.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The report draws on data supplied by 11 leading aggregator brands for the six-month period of 1 April 2021 to 30 September 2021.
The stats found that the value of settled commercial lending rose to its highest level yet, at $13.4 billion.
This was up approximately $4 billion (or 42.92 per cent) compared year-on-year.
Period-on-period, the value of commercial loans settled by mortgage brokers grew by just over $3.13 billion, or 30.46 per cent, from $10.27 to $13.4 billion.
Moreover, brokers continue to diversify their offering, with the number of mortgage brokers also writing commercial loans through their aggregator panel having increased once again to a new high of 5,268 in the April-September period. This was up by more than 700 brokers than in the same period last year (when it was 4,539 brokers).
Approximately 28.8 per cent of mortgage brokers now also write commercial deals through their aggregator’s panel.
Victoria brokers diversifying at pace
While the largest number of brokers writing commercial was in NSW/ACT, the state that experienced the largest number of brokers diversifying was in Victoria.
Period-on-period, Victoria recorded the largest growth, up 253 brokers or nearly 20 per cent. Given the growth, it is perhaps unsurprising that Victoria recorded the largest increase in the value of commercial lending over the period too, reaching its highest-ever value at $3.98 billion, with an increase of $1.23 billion or 44.73 per cent up from the previous period.
Western Australia grew by 91 brokers or just under 15 per cent, settling more than $1 billion ($1.24 billion) in commercial loans for the first time.
NSW and ACT were up by 145 brokers or just under 10 per cent, and settled up around $880 million more than in the previous six-month period, coming in just over $5.31 billion in the April-September period.
Queensland recorded an increase of 39 brokers or 3.9 per cent, settling $470 more (27.17 per cent more) whilst South Australia remained steady in the number of brokers diversifying, but recorded significant growth of $290 million or 85.30 per cent up on the prior period.
The MFAA report showed that the total book value of commercial lending for mortgage brokers writing these loans through their aggregator panel continues to grow, reaching a record high of $54.19 billion.
Period-on-period, the commercial book value increased by $1.69 billion, while the year-on-year value increased by $5.28 billion or 10.8 per cent.
MFAA chief executive Mike Felton commented: “More mortgage brokers than ever are now also writing commercial loans.
“This indicates brokers are diversifying their business and assisting their customers with a wider range of their financing needs.”
The IIS report also showed that the broker channel settled $165.96 billion in residential home loans for the six-month period, the highest value recorded for any period since the MFAA commenced reporting in 2015, up 54.4 per cent year-on-year.
As previously announced, brokers facilitated a record 66.9 per cent of all new residential mortgages during the final quarter of that six-month period. The September quarter recorded the largest quarterly settlement figure to date too, at $93.42 billion over the three-month period.
JOIN THE DISCUSSION