Mortgage brokers were responsible for 64.7% of the growth in the mortgage market, according to new research.
The research, commissioned by the MFAA, showed that of the $93.7 billion increase in mortgage lending in Australian Bureau of Statistics Housing Loan statistics, brokers accounted for $43.7 billion comparing the four quarters ending December 2013 and the four quarters ending December 2014.
During the same period, the total business attributable to brokers was $158.5 billion and represents growth of 28%, materially out-pacing total housing finance commitments which grew only 17%.
During the December 2014 quarter, brokers settled $43.7 billion of retail, residential loans which is a 6% increase on the previous quarter compared to an 8% increase in the total market size on last quarter.
“The 64.7% contribution to growth indicates that customers continue to select brokers despite a slight drop in share of the marketplace,” MFAA chief executive Siobhan Hayden said.
The data reveals the broker market share decreased slightly to 50.5% in the December quarter, from the previous quarter of 51.5%, due to a balancing in the marketplace. However, Hayden is still pleased with the solid result, indicating brokers still account for more than half of the total market share.
“We continue to encourage consumers to select a broker to help them make the right choices when it comes to home loans. Our members offer highly experienced credit advice and these figures demonstrate that this advice is effective,” she said.
The MFAA issues these figures each quarter with research group ‘comparator’ calculating the quarterly loans transacted by 19 aggregator groups as a percentage of ABS Housing Loans statistics.