'Equilibrium' ahead, as market share flatlines

by Adam Smith28 Nov 2011

Brokers currently control around 43% of the market, and Deloitte partner James Hickey has stated they are not likely to see this market share move much in 2012.

“[Broker market share] has probably been in equilibrium for awhile. There are always going to be years where it moves a bit higher, but it's in a pretty steady state and it's been there for a number of years,” Hickey said.

This doesn’t mean, however, that brokers can’t see good volumes in the year ahead. Hickey said fierce competition between lenders could deliver benefits to brokers in 2012.

“The great news is that a lot of consumers are seeing a lot of active marketing and increased awareness that the banks are offering a great deal. A lot of consumers are probably going to their broker to say 'How do I make sense of all this?’” he said.

The price wars also carry a downside. With funding costs set to remain high and lenders scrambling to maintain profits amid lower credit growth, brokers could be the ones feeling the pinch in 2012.

“Banks are looking at cost savings across their value chain, and they could have a look at broker costs across the value chain,” Hickey said.

Related stories:

Broker profits take hit as market share rises

Brokers to claim more market share


  • by Peter Thompson 28/11/2011 10:45:08 AM

    Who do we believe. This news outlet says broker share to flatline at approximately 43%. If you read a competitor industry publication quoting a senior executive of an Aggregator for the same day broker share to top 50%!

  • by john 28/11/2011 4:57:59 PM

    Yep if we keep encouraging it in the press thats exactly what will happen brokers margins are tight enough. Its a classic situation that a business can turn around to the very person who provides their revenue 43% of the homeloan market and dictate the level of commission being paid. With that much collective market share