The percentage of mortgage broker originated loans has fallen slightly over the December 2016 quarter, new research shows.
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Broker market share falls from last quarter
According to research group ‘comparator’, a CoreLogic business, finance brokers originated at least $50.19 billion in new home loans during the December 2016 quarter - the first time that broker originated lending has exceeded $50 billion in a quarter.
However, brokers originated 51.9% of new residential home loans over the December 2016 quarter, slightly down on the 53.6% settled in the September 2016 quarter and matching the figure from the same quarter in December 2015 at 51.8%.
“The market share result for the end quarter of 2016 is just slightly ahead of the comparative figure for 2015, showing that consumers still support the broker position with the majority of residential lending. The softening in market share is a seasonal trend experienced since 2014 and does not reflect any change in brokers’ customer satisfaction. The past three December quarters have shown an adjustment in share followed by a rise in subsequent quarters,” said MFAA CEO Mike Felton.
“Brokers have an established role in the investor side of the market and this segment of borrowers has been impacted with the recent changes in lending restrictions. The ABS data also shows a flattening of the housing market with an overall 0.5% decrease in the number of settlements and a 1.1% increase in value of settlements for the 6 months ended September 2016. The December quarter result, however still reflects solid consumer support for brokers in Australia in the residential lending sector,” Felton said.
Research group ‘comparator’ provides the quarterly figure by calculating the value of loans settled through 19 of the leading aggregator groups as a percentage of the ABS Housing Finance commitments.
Brokers on Banks: have your say
MPA's Brokers on Banks survey is open now and needs your help! For 14 years this survey has enabled you to score all of the banks on their performance, and give your views on key issues such as ASIC, channel conflict and commission. Take 5 minutes now to keep the banks honest, with the chance to win a pair of Bose QuietComfort® 25 Acoustic Noise Cancelling® headphones (RRP $399).
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According to research group ‘comparator’, a CoreLogic business, finance brokers originated at least $50.19 billion in new home loans during the December 2016 quarter - the first time that broker originated lending has exceeded $50 billion in a quarter.
However, brokers originated 51.9% of new residential home loans over the December 2016 quarter, slightly down on the 53.6% settled in the September 2016 quarter and matching the figure from the same quarter in December 2015 at 51.8%.
“The market share result for the end quarter of 2016 is just slightly ahead of the comparative figure for 2015, showing that consumers still support the broker position with the majority of residential lending. The softening in market share is a seasonal trend experienced since 2014 and does not reflect any change in brokers’ customer satisfaction. The past three December quarters have shown an adjustment in share followed by a rise in subsequent quarters,” said MFAA CEO Mike Felton.
“Brokers have an established role in the investor side of the market and this segment of borrowers has been impacted with the recent changes in lending restrictions. The ABS data also shows a flattening of the housing market with an overall 0.5% decrease in the number of settlements and a 1.1% increase in value of settlements for the 6 months ended September 2016. The December quarter result, however still reflects solid consumer support for brokers in Australia in the residential lending sector,” Felton said.
Research group ‘comparator’ provides the quarterly figure by calculating the value of loans settled through 19 of the leading aggregator groups as a percentage of the ABS Housing Finance commitments.
Brokers on Banks: have your sayMPA's Brokers on Banks survey is open now and needs your help! For 14 years this survey has enabled you to score all of the banks on their performance, and give your views on key issues such as ASIC, channel conflict and commission. Take 5 minutes now to keep the banks honest, with the chance to win a pair of Bose QuietComfort® 25 Acoustic Noise Cancelling® headphones (RRP $399).
Closes 17th February - don't miss out!
