According to research group comparator mortgage brokers were responsible for 71% of the growth in the residential mortgage market when the twelve months to the end of March 2014 are compared to the twelve months to the end of March 2015.
The research commissioned by the Mortgage and Finance Association of Australia (MFAA) shows that brokers accounted for $31.2 billion of the $44.2 billion increase in mortgage lending based on ABS Housing Finance Commitments.
“The 71% contribution to growth is testament to the tide of consumer attraction to the broker channel and deflates the unsubstantiated comments that consumers receive poor customer service,” commented MFAA CEO Siobhan Hayden.
Furthermore, the total new home loan lending attributable to brokers was $165 billion for twelve months to the end of March 2015, an increase of 19% over the equivalent figure for the period to March 2014.
The data also shows that the broker market’s share of new home loan lending for the March 2015 quarter was 51.9%, the highest result in the history of the MFAA survey.
MFAA CEO Siobhan Hayden was pleased with the result. “The broker channel achieved a positive benchmark last quarter and it is good to see that this high level has been maintained throughout this period,” she stated.
“The research also shows that brokers are offering the consumer real choice and driving competition; 30.2% of broker initiated home loans went to smaller lenders, which is a true indicator of competitive behaviour. Based on this success we continue to call on members to look to diversify their service offering to take advantage in the consumer switch to the broker channel,” she added.
84% in a recent survey by My Mortgage web portal of 60,000 consumers were positive about seeking additional services from the broker channel. #
The MFAA issues these figures each quarter with research group comparator calculating the quarterly loans settled by the 19 largest mortgage broker and aggregator groups as a percentage of ABS Housing Finance Commitments.