Mortgage industry continues to grow: MFAA report

Key trends revealed in latest Industry Intelligence Service report

Mortgage industry continues to grow: MFAA report

The Mortgage & Finance Association of Australia (MFAA) has released the 18th edition of its Industry Intelligence Service (IIS) report, highlighting key trends in the mortgage and finance sector.

The report, covering the six-month period ending March 2024 and based on data from nine leading aggregators, reinforces mortgage brokers’ strong position in the home loan market. 

According to the report, brokers facilitated 74.1% of all new residential home loan settlements by the end of March 2024 — the highest market share recorded at that time. This figure was later surpassed by the September 2024 quarter, which showed an increased share of 74.6%. 

Loan settlement volumes also remained high, with brokers securing $357.99 billion in new home loans during the period. This marks the second-highest value of broker-originated loans recorded in a 12-month period and the third time settlements have exceeded $350 billion.

According to MFAA chief executive Anja Pannek (pictured above), the report’s findings demonstrate the strength of mortgage and finance brokers in a shifting lending environment.

“The role brokers continue to play in providing choice and competition is important, and demand for their services will only continue to grow as market conditions are expected to ease in the coming months,” Pannek said.

Broker numbers also reached a record high, with the total population rising 13.2% year-on-year to 22,031.

The MFAA report also highlighted growth in commercial lending, with 6,755 brokers writing commercial loans in the October 2023 to March 2024 period — a 19.47% increase from the previous six months and up 15.19% year-on-year. The total value of commercial loans settled by brokers climbed 23.12% annually to $20.31 billion.

Pannek noted that more brokers are expanding their expertise into commercial finance, asset and equipment lending, and business finance, creating additional opportunities to serve clients. 

The report also examined female participation in the industry, with the number of female brokers reaching 3,749 — the highest since 2018. This represents a 5.69% increase from the previous reporting period and a 16.86% rise year-on-year. However, women still make up only 26.7% of the broker workforce, a 0.2 percentage-point decline year-on-year.

“The industry needs to work together to better promote the benefits of a career in broking for women, including the flexibility of running your own business,” Pannek said.

Meanwhile, conversion rates declined for the third consecutive period, dropping to 76.3%, reflecting ongoing serviceability challenges. 

In the broker-originated lending space, major banks saw a resurgence, with their market share rising 2.8 percentage points to 40.1% in the March 2024 quarter — the first time in six months it had exceeded 40%. However, non-major lenders also gained ground, with their broker-lodged loan share increasing by two percentage points year-on-year to 40%, underscoring the competitive landscape fostered by brokers.

Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.