$100 billion: Brokers set to crack benchmark

by BN14 Nov 2012

Mortgage brokers are expected to break through the $100 billion mark in lending volumes for the 2012 calendar year.

Industry research group Comparator analysed data from the nation’s top 16 mortgage brokers and aggregators. Their report shows brokers have continued their growth momentum, achieving 3.76%growth in origination volumes for new home loans during the September quarter.

These 16 brokers and aggregators originated $25.62 billion in retail residential lending during July, August and September, compared to $24.69 billion in the previous quarter.

Brokers lifted their share of the total $62.071 billion in home loans written during the last quarter, according to the Australian Bureau of Statistics, from 38.8% to 41.3%.

CEO of the Mortgage and Finance Association of Australia, Phil Naylor, says the figures are a sign that the broker channel is continuing to grow as more consumers are starting to accept their valuable position as trusted advisers.

“The consolidation of the industry also continues, with the four largest players accounting for more than 55 per cent of the volumes generated by the mortgage broker sector," Naylor said.

"It is clear that both consumers and lenders are recognising brokers’ increasingly important role and as a result.”

Naylor says the MFAA expects the mortgage broking sector will continue to grow during 2013.