Broker market share hits new record high

The MFAA has revealed that broker market share has reached a new milestone, surpassing the previous record.

The Mortgage & Finance Association of Australia (MFAA) has revealed that mortgage brokers wrote 74.1 per cent of new loans between January and March 2024. This is an increase of 4.5 percentage points from the previous record of 71.8 per cent that was reached during the October to December 2023 quarter. It marks the highest ever mortgage broker market share on record and has “solidified” brokers as a borrower’s first choice, according to the association.

The value of loans written by brokers in the January to March quarter was $81.47 billion, a $12.59 billion decrease compared to the December 2023 quarter. However, the March quarter loan value represented a 3.7 per cent year-on-year increase and the second highest value observed in March quarter, according to the MFAA.

MFAA chief executive Anja Pannek said: “This result underscores the invaluable role mortgage brokers play in the Australian home lending market.”

She continued: “Mortgage brokers offer personalised guidance and support throughout the entire home loan process, helping Australians navigate what is an increasingly complex lending landscape.

The value mortgage brokers offer their clients cannot be underestimated. They have brought choice and competition to the market, and act in the best interests of their clients.”

Pannek said the increase in mortgage broker market share over the past few years has been driven by buyer trust in mortgage brokers across Australia.

“Australians are making the choice to go through a mortgage broker, and it’s about more than an interest rate,” she said.

“Brokers are also helping to increase the financial literacy of their clients, showing their clients where they can make shifts in their budgets to reach their goals, and they do everything they can to find solutions for their clients.”

(Source: The Adviser 30 May 2024)