Mortgage brokers have experienced a 4.2% year-on-year fall in market share for the quarter ending September 2019, according to the latest data commissioned by the MFAA.
While mortgage brokers facilitated more than half (54.9%) of all new residential mortgages during the period, this share was down 4.2% from the comparable period in 2018 (59.1%) and down 0.8% from the September 2017 quarter (55.7%).
MFAA CEO Mike Felton said the decline is disappointing, but is also partly due to a correction from the 2018 September quarter when unusually tight credit corresponded with a higher-than-normal increase in broker market share.
“During the past quarter, anecdotal evidence suggests that credit policy eased somewhat and that lenders were competing more aggressively through proprietary channels despite a continued trend away from the four majors,” Felton said.
“This is evidenced by measures being adopted by lenders to attract borrowers such as discounts and other incentives, which in many respects have been a reaction to the increased competition that brokers drive.
“Despite the correction in broker market share in the last quarter, the broker value proposition remains strong, underpinned by choice, experience and strong satisfaction levels.
“We are confident that the overall broker market share trend over time will maintain an upward trajectory and benefit from reforms currently being implemented that will further drive trust, confidence, and recognition and particularly amongst those who are yet to use a mortgage broker.”