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Mortgage brokers wrote 69.3 per cent of all home loans in the three months to December, a new record for the December quarter, MFAA stats show.
New statistics released by the Mortgage & Finance Association of Australia (MFAA) have found that the dominance of the broker channel continues, with mortgage brokers facilitating 69.3 per cent of new residential home loans between October and December 2022, a new record for the quarter.
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The latest data, conducted by research group Comparator (a CoreLogic business) on behalf of the MFAA, showed that broker market share rose 2.8 percentage points on the previous December record (66.5 per cent), which was achieved during the December quarter 2021.
The December figure also represented the third-highest broker market share figure on record, behind the record 71.7 per cent set in the previous quarter (ended September 2022) and the 69.5 per cent set in March 2022 quarter.
However, while the share of broker loans has increased to a new record high for the December quarter, the value of home loans settled by brokers dropped.
Over the three months to December 2022, brokers settled $89.58 billion, which is $6.07 billion (or 6.34 per cent) less than the $95.65 billion settled in December 2021. This was calculated as the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS housing finance commitments.
Indeed, the fall comes as the volume of new lending dropped amid rising interest rates and a refinancing boom. According to the Australian Bureau of Statistics (ABS), new mortgage lending fell by 4.3 per cent to $23.4 billion in the month to December, continuing a trend that started in January 2022, when a record $33 billion in new mortgages were recorded.
MFAA chief executive Anja Pannek commented that the market share figures showed that Australian home buyers continue to demonstrate their confidence and trust in mortgage brokers, particularly in the current environment of rising interest rates and cost-of-living pressures.
Ms Pannek said: “With many Australians looking for guidance as their fixed rate mortgage reverts to a higher variable rate this year, mortgage brokers offer an invaluable service to their clients. They provide their clients with options based on their individual needs — whether that be staying with their existing lender or accessing competitive offers in market if the client chooses to refinance.
“The reforms implemented over the past two years including the unrivalled Best Interests Duty, have served to increase the trust Australian home buyers have in mortgage brokers, whether they be purchasing their first home, refinancing their existing loan or buying an investment property.”
[Related: Broker market share breaks 70% milestone]
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