The total broker market share of new home lending has hit a record high, according to new research.
The research, commissioned by the MFAA, reveals that total new home loan lending attributable to brokers was $165 billion for twelve months to March, an increase of 19% over the equivalent figure for the period to March 2014.
This brings the total broker market share of new home loan lending in the March 2015 quarter to 51.9%, the highest result in the history of the MFAA survey.
On top of dominating the market, MFAA CEO Siobhan Hayden says the research also proves that brokers are driving competition and consumer choice.
“The research also shows that brokers are offering the consumer real choice and driving competition; 30.2% of broker initiated home loans went to smaller lenders, which is a true indicator of competitive behaviour,” she said.
“Based on this success we continue to call on members to look to diversify their services offering to take advantage in the consumer switch to the broker channel.”
Further, the research revealed that mortgage brokers were responsible for 71% of the growth in the residential mortgage market in the twelve months to March 2015.
Brokers accounted for $31.2 billion of the $44.2 billion increase in mortgage lending, based on housing finance commitments from the Australian Bureau of Statistics.
“The 71% contribution to growth is testament to the tide of consumer attraction to the broker channel and deflates the unsubstantiated comments that consumers receive poor customer service,” Hayden said.
The MFAA issues these figures each quarter with research group comparator
, calculating the quarterly loans settled by the 19 largest mortgage broker and aggregator groups as a percentage of ABS Housing Finance Commitments.