But brokers still write more than two-thirds of home loans, says MFAA
The latest industry figures show that mortgage brokers wrote 67.2% of all new residential home loans between April and June 2023, a 0.8 percentage fall from the same quarter in 2022.
The data was released on Wednesday, September 6, by research group Comparator, a CoreLogic business, and commissioned by the MFAA.
The peak industry body said while broker market share had fallen compared to the June 2022 quarter, the latest result was an 8.2 percentage point increase from the 59% market share reached in the June 2021 quarter.
The 67.2% figure for the June 2023 quarter is also lower than the 69.6% of new home loans that brokers facilitated in the March 2023 quarter.
Mortgage brokers settled $88.62 billion in home loans in the June 2023 quarter, which year-on-year equates to a 7.8 percentage point drop from the $96.08bn settled in the June 2022 quarter.
However, when compared quarter-on-quarter, the value of home loans settled by mortgage brokers increased $10.03bn following three consecutive periods of decline.
The outlook for the mortgage and finance broking industry remains strong, said MFAA CEO Anja Pannek (pictured above).
“Mortgage brokers continued to write more than two out of three home loans during the June 2023 quarter, and while mortgage broker market share did dip slightly, this is consistent with normal fluctuations we have observed over the nearly 11 years we have been tracking the measure,” Pannek said.
“Mortgage brokers continue to provide essential expertise and support to homebuyers, and those refinancing.”
Pannek said a recent MFAA member survey showed that the so called “refinancing boom” had brought new clients to the broker channel, as fixed rate terms ended and borrowers navigated their options in the current economic environment.
“With over one million fixed rate terms still to end this year and into 2024, this is a huge opportunity for mortgage brokers,” she said.
Pannek also highlighted the growth in mortgage broker market share over time.
“When you look back to just five years ago to 2018, mortgage broker market share was at 53.9%, if you look back 10 years, it was 44.9%,” Pannek said. “To see it at over 67% today is a result mortgage brokers can be proud of.”
“The trajectory of mortgage broker market share has been well earned through mortgage brokers’ dedication to their clients and the professional manner in which the industry has implemented reforms, particularly the Best Interests Duty which has only served to strengthen the confidence borrowers have in their broker.”
Speaking to MPA in June, when the MFAA released the March quarter figures, Adam Rakowski, the principal of brokerage Ortus Financial said he expected broker market share to climb towards 80% and this was driven by people relying on brokers to find the “most suitable solution” in a market where there was a wide array of lending options.
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