Record broker market share for June quarter

The mortgage broker channel has recorded its highest ever residential home loan market share for the June quarter.

Brokers claimed 55.8% of the market share over the April to June quarter, according to research commissioned by the MFAA and conducted by a CoreLogic business.

Typically, this time of year marks a seasonal low point for the broker channel. However, this year’s result is 1.9 percentage points higher than the corresponding 2018 quarter and 4.3 percentage points higher than the same in 2017.

MFAA CEO Mike Felton said the result reflected the “unwavering customer trust and confidence” in the broker proposition.

“This is an outstanding result for the broker channel, particularly as it was achieved during the seasonal low point for broker market share. It once again demonstrates the key role brokers play in ensuring that their customers continue to have access to credit during tight market conditions,” he added.  

The research also showed that the overall value of lending through the broker channel over the quarter was down $7.22bn, from $49.51bn settled in 2018 to $42.29 this year, a decline of 14.6%.

The overall market felt the decrease, with volumes down 17.5% and the proprietary channel declining by 20.5%.

“Despite the decline in the value of residential lending for this period, brokers have maintained their position as consumer champions,” said Felton.

“This result clearly shows that mortgage brokers are able to remain focused on their clients as they continue to deliver choice and access to credit for Australian consumers.”