The mortgage broking sector is celebrating a week of good news after a series of three key announcements signalled the rude health that the industry is in at the start of 2021.
On Monday, housing markets were shown to be rising at their fastest rate for almost 20 years, after CoreLogic’s national home value index registered their highest number since 2003.
A day later, ABS Lending Indicators marked an eighth month in a row of growth in home loans, with the biggest single month of expansion since 2016 and a 40% increase on this time last year.
Wednesday saw announcements that home auctions had surged, with Brisbane and Sydney reporting 13% and 10% improvements respectively, resulting in a 5% rise in the national median price of houses sold at auction.
Then, to cap it all off, the Mortgage Finance Association of Australia (MFAA) declared that the last quarter of 2020 had been one of the best ever for mortgage brokers in terms of market share, with the sector responsible for 59.4% of all residential home loans in Australia.
Additionally, the quarter ending December 2020 was the highest ever recorded in terms of dollar value, with $64.1bn of new home loans settled across the leading aggregators, up 23.44% up on the same time in 2019, a rise of $12.17bn in real money terms.
Brokers themselves were quick to celebrate the news.
“Mortgage Brokers have two advantages in their arsenal,” said Raj Ladher, Mortgage Broker at YourMortgageBroker. “Firstly they have a range of lenders whose policy and interest rates can differ considerably. Secondly, they have the know-how along with the personalised customer service.”
“In the main, mortgage brokers are small businesses where a client isn’t just another number. So many of the clients that come through to YourMortgage have already been to their bank and been declined, and we have managed to secure them a home loan which is very rewarding all round.”