Broker Channel Hits New Share Heights of The Home Loan Market
The Broker market Share has hit a new record high.
The market has spoken and is choosing mortgage brokers as their preferred method of organising their finances. 59.7% of lending have been originated by brokers in the last 3 months, this percentage is increasing each month as brokers are looking after their clients best interest and making the finance process as easy as possible in this trying time.
Research group comparator, a CoreLogic Business has released latest data commissioned by the Mortgage & Finance Association of Australia (MFAA). The share of broker originated approved loans in three months ending 31 March 2019 increased to 59.7%. That is 4.4% points in increase compared to the same quarter of 2018 and 6.1% points up from the March quarter of 2017.
According to MFAA CEO Mike Felton, 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. In particular, it coincided with the release of the banking royal commission’s final report.
Mike Felton also stated “This outcome is remarkable for the mortgage broking channel. Recording the highest market share in the history of the survey during a period of restricted credit, it highlights the key role that 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.”
In addition, he also emphasized 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 where consumers value the greater industry experience and choice that mortgage brokers provide.
Lastly, Mr. Felton added “despite the decline in the value of residential lending volumes for this period, brokers have maintained their positions as Consumer Champions. This result clearly shows that mortgage brokers have been able to remain focused on their clients despite all the noise surrounding the industry and continue to deliver unparalleled service and choice to Australian consumers.