Mortgage brokers have lifted lending volumes by a whopping 41.5% in the March quarter compared to the year before.
Brokers continue to build their market share by lifting their volumes to $34.1 billion during the March quarter, compared with $24.1 billion in the previous corresponding quarter in 2013, according to business benchmarking company Comparator.
The managed growth of the mortgage broker industry has meant its share of home loans provided in Australia doubled over the last 10 years to reach a milestone of 50% during the March quarter, Comparator research showed.
Mortgage and Finance Association CEO Phil Naylor said the market share study shows the broker channel is growing strongly on the back of the low interest rate environment and that large and small lenders are investing in the broker channel to lift their share of the mortgage market.
“The results support the view that brokers have a higher rate of converting loan applications to settlements than the direct lender channel, while investors and those looking to re-finance at historically low fixed rates are flocking to the broker channel.”
MFAA, representing more than 10,300 members, expects the mortgage broking sector to continue to lift its market share and lending volumes over the rest of the year.
“The figures clearly show that the mortgage brokers have got their message through to borrowers that they are the best vehicle to find a loan most appropriate to their needs and aspirations,” Naylor said.
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