Broker market share has risen for the 16th consecutive quarter reaching a new market share record, the latest research has revealed.
According to research conducted by comparator and commissioned by the MFAA
, mortgage brokers were responsible for 52.6% of new lending in the residential home loan market during the September quarter.
This is the highest percentage share of the home loan market since ‘comparator’ started recording data for the MFAA
four years ago. Mortgage brokers have doubled the value of their new lending during this time.
“These results solidify the place of finance brokers in the Australian loan market,” MFAA
CEO Siobhan Hayden said.
“They show that brokers make a difference to the industry.”
During the September 2015 quarter, brokers settled $50 billion worth of residential loans, a 5% increase on the previous quarter. This result means brokers accounted for 82% of the increase in new home loan settlements.
“The 82% contribution to growth indicates that customers are confident that brokers deliver results,” Hayden said.
“Our members are the best educated brokers and these figures illustrate that customers consistently find that dealing with brokers delivers an enhanced customer experience.”
Commenting on this data, St George general manager mortgage broking, Clive Kirkpatrick, told Australian Broker
said it is hard to predict future broker market share, although the St George Group will support whichever channel is fulfilling consumer demand.
“In the end it is determined by customer choice, so where the broker market share lands is going to be dependent on the customer. From a St George perspective, we are channel agnostic when it comes to customer choice,” he said.
“The big thing, however, is around once the customer is on board how the bank and the broker work together to make sure all the customer’s financial needs are met to ensure the customer becomes stickier for both the bank and the broker, in terms of trail income.”
However, Kirkpatrick said the third party is an extremely important growth channel for the bank.
“In terms of flow, brokers account for just over 50%, so we are in line with the market. However, the more important statistic for us is that around 60-65% of new bank customers are coming through the broker channel,” he told Australian Broker
“You can see that is an incredibly important part of our growth – being St George, Bank of Melbourne and Bank of SA.”
Also responding to this data, CommBank general manager of broker sales, Sam Boer, told Australian Broker
that it will remain committed to brokers and investing in the channel.
“Commonwealth Bank is committed to the broker channel. As a leader in technology, we are focused on making it easier for brokers to do business with us at every interaction,” he said.
“Brokers want consistency and certainty when they recommend the Commonwealth Bank and we’re dedicated to ensuring our processes are best in market.”