Brokers Dominate Market Share as Settlements Break Records

Mortgage brokers continue to underwrite more than two-thirds of residential real estate loans and settled a record $95.65 billion in the last quarter of 2021.

Borrowers continue to flock to brokers, according to new statistics released by the Mortgage & Finance Association of Australia (MFAA), with 66.5% of all new residential loans originated between October and December 2021 being facilitated through the third-party channel .

Analyzing the value of loans settled by 18 “leading brokers and aggregators” as a percentage of Australian Bureau of Statistics housing finance commitments, the research group comparator (a CoreLogic firm) found that brokers’ market share had increased by 7.1 percentage points over the same quarter last year (while the market share was 59.4 percent).

This marked a new high for the channel for the December quarter and is just 0.4 percentage points below the all-time high of 66.9%achieved in the September quarter of last year.

According to the analysis, the total value of mortgages settled through brokers in the December quarter reached $95.65 billion, a new record high.

The figure represents a 49.22% year-over-year increase from the $64.10 billion settled in the same quarter of 2020.

Noting the findings, MFAA chief executive Mike Felton said the results reflected a continued vote of consumer confidence in the service provided by mortgage brokers, as well as the competition and choice the broker channel brings. in the mortgage market.

“Our industry’s growth of nearly 50% year-over-year in terms of settled loan volume is a phenomenal result and sends a powerful message about the state of our industry following the significant changes being made,” Mr. Felton said.

“The combination of reforms implemented – alongside brokers’ dedication to their clients – continues to deliver strong results for consumers, building trust and reinforcing that mortgage brokerage is a force for good that supports competition and choices that are essential to the Australian economy.”

The MFAA figures come as several aggregators and lenders report record mortgage settlements for calendar year 2021.

Connective recently revealed that its brokers have settled a total of $74.9 billion in home loans last year, while AFG’s disbursements hit record highs last year and its FY22 half-year results show settlements increased by 47 % to reach $30.8 billion.

The broker channel has also been praised by players on both ends of the political spectrum.

Australia’s former and longest-serving Treasurer Peter Costello (1996-2007) – a former member of the Liberal Party – recently highlighted the “important” role that brokers play in the “financial architecture” of the Australia, while Labor MP Stephen Jones, shadow financial adviser Shadow Services Minister and Deputy Treasurer told the adviser about his positive experience with a broker after being a direct client for almost 20 years.

[Related: Brokers write two-thirds of Australian mortgages]

Brokers Dominate Market Share as Settlements Break Records



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Last update: March 01, 2022

Posted: March 02, 2022

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Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian brokerage industry, the mortgage market, financial regulation, fintech and the wider lending landscape, Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser webcasts. Live.

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