Homebuyers still choosing brokers
Homebuyers and homeowners are continuing to choose mortgage brokers, with the latest MFAA figures showing the value of home loans settled by brokers has hit a new quarterly record.
According to data released by research group Comparator commissioned by the MFAA, the value of home loans settled over the June 2022 quarter reached $96.08bn.
It was the highest value of broker-originated home loan settlements for any quarter on record and represents a year-on-year increase of 23.58%, the MFAA said.
Brokers facilitated 68% of all new residential home loans over the June 2022 quarter. Although it marks a slight drop from 69.5% over the March 2022 quarter, it was the highest for a June quarter since the measure has been tracked, the MFAA said. It represents a 9-percentage point increase compared to the June 2021 quarter and an 11-percentage point increase compared to the June 2020 quarter.
Read more: What’s driving homebuyers to use brokers?
Referring to the June quarter figures as an “outstanding result,” mortgage broker Fabio De Castro (pictured above left) of Oxygen Home Loans told MPA he expects brokers’ share of total residential home loans to “keep going up.”
“I think 68%, 69% is just the beginning … I do see that market share continue to grow towards the 75% and even one day, 80%,” De Castro said.
The latest figures reiterate the importance and value of mortgage brokers in helping clients receive the most competitive offer, he said.
With rising interest rates, new lenders entering the market and some lenders offering different interest rates for new and existing customers, De Castro said there is increasing complexity in the home loan market.
“I think customers are really looking for guidance more than anything and with that comes great service,” De Castro said.
“If you sell one product (as a bank), you can only offer that particular product, but when they talk to mortgage brokers, we give them choice, and with choice, comes a better market share.”
Incoming MFAA CEO Anja Pannek (pictured above right) said the June 2022 quarter figures represent an “incredible result” for mortgage brokers, particularly in the current environment of rising interest rates and a slowing property market.
“It is clear from the strong growth in the proportion of home loans written by mortgage brokers over the past few years that customers value the service mortgage brokers offer,” Pannek said.
Pannek said the current market conditions further highlight the benefits of using a mortgage broker, who can explain the array of different lenders, products, and options available to their clients.
Following five years of successful reform, the results further demonstrate ongoing increases in consumer trust and confidence in the industry, she said.
Read next: MFAA chooses new CEO
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.
MPA presents the final ranking of Australia’s top aggregators and boutique aggregators in 2023 based on brokers’ votes. Learn more here.
