Industry News, June 2019
The broker channel has hit new heights, recording its highest ever share of the home loan market
The Advisor News - by Charbel Kadib 9
According to the latest data released by research group comparator, a CoreLogic business, and commissioned by the Mortgage & Finance Association of Australia (MFAA), the share of broker originated loans approved in the three months ending 31 March 2019 increased to 59.7 per cent, up 4.4 percentage points when compared to the same quarter of 2018, and up 6.1 percentage points from the March quarter of 2017.
MFAA CEO Mike Felton said the result— which is based on the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments — was a strong vote of confidence in the mortgage broking industry, particularly as it coincided with the release of the banking royal commission's final report.
“This is a remarkable outcome for the mortgage broking channel. To record the highest market share in the history of this survey during a period of restricted credit highlights the key role brokers have played in driving competition, choice and access to credit by stepping in to find solutions and provide critical assistance in the redistribution of credit demand," he said.
“The fact that customers have continued to vote with their feet during a period that coincided with the release of the royal commission final report also highlights the strength of this market share result and sends a strong message to policymakers as to the extent to which consumers value the greater industry experience and choice that mortgage brokers provide.”