Value of home loans settled breaks barrier
Mortgage brokers continue to enjoy exceptional market share, writing two in every three home loans - and now they can boast the best results ever for the value of those loans.
Peak industry organisation the MFAA has just released the latest quarterly broker statistics supported by Comparator, showing brokers settled 66.5% of all new residential home loans in December 2021. This was a big increase on the 59.4% achieved in the December 2020 quarter.
While it’s slightly down on the September 2021 quarter result of 66.9%, what’s more impressive is the total value of mortgages settled by brokers. It reached $95.65 billion, which is a record for all quarters since reporting began, and a huge 49.2% year-on-year increase on the $64.10 billion settled in the December 2020 quarter.
It’s clear that the property boom has generated a growing customer base for brokers over 2021, as more and more people turn to mortgage brokers to find the best loans for property purchases and refinances.
Records for total value of mortgages settled were broken almost every quarter in 2021, while the percentage of loans settled by brokers has also steadily grown.
In the March 2021 quarter the value of new lending reached $62.2 billion, while in the June quarter it grew to $77.75 billion. In the January quarter, brokers settled 575% of all new residential loans, rising to 59% in the June quarter, and 66.9% in the September quarter.
MFAA CEO Mike Felton (pictured) said the latest results showed a continued vote of consumer confidence in the service mortgage brokers provide, as well as the competition and choice brokers bring to the home loan market.
“To have our industry grow almost 50% year-on-year in terms of the volume of loans settled is a phenomenal result and sends a powerful message as to the state of our industry following the significant changes made,” said Felton.
“The combination of reforms implemented – alongside brokers’ dedication to their customers – continues to produce strong consumer outcomes driving trust and confidence and reinforcing that mortgage broking is a force for good that supports competition and choice that is critical to the Australian economy.”
Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments. The MFAA releases these statistics each quarter.
