Broker numbers surpass 19,000 for first time

Home loan books value also up 7.45%, MFAA's latest report reveals

Broker numbers surpass 19,000 for first time



The number of mortgage and finance brokers in Australia has exceeded 19,000 for the first time, according to new data released by the MFAA.

The MFAA Industry Intelligence Service 15th Edition report, released on Friday, shows that the number of brokers has reached 19,236, increasing 5.2% year on year. The report covers the six-month period from April 1, 2022, to 30 September 2022.

The report also revealed that the mortgage broker market share for residential home loans reached 71.7% in the September 2022 quarter, a record high and the first time the measure exceeded 70% since it has been tracked. The latest figures, which cover the December quarter, show that share has pared back slightly to 69.3%.

Home loan volumes and loan book growth is also tracked in the report. It showed that the aggregate value of brokers’ home loan books grew by 7.45% year-on-year, to $917.59bn. The highest growth occurred in Queensland at 10.65%, while Victoria and NSW grew 8.41%% and 8.30% respectively year-on-year. Tasmania recorded a drop in the total loan book.

However, the total number of home loan applications lodged declined for the second consecutive six-month period. More than 382,000 home loan applications were lodged between April and September 2022, a 6.75% year-on-year decline and a 3.3% decline compared to the previous six-months.

MFAA CEO Anja Pannek (pictured above) said the report showed mortgage and finance brokers continued to be relied on by Australian homebuyers and business owners in the current rising interest rate environment.

“We know that for many borrowers, the consecutive rate rises that occurred during the period the report covers were the first time they have experienced upwards movement in the cash rate,” Pannek said.

“We’ve heard from our members that in the current environment clients are proactively reaching out to their broker to understand their options.”

The MFAA IIS report draws on data supplied by 11 of the industry’s leading aggregators to provide broker and industry performance and demographic data.

Broker diversification into commercial lending

Broker diversification into commercial lending is also increasing, according to the report, with more than 6,000 mortgage brokers now operating in this part of the market, representing a new all-time record.

The value of settled commercial lending recorded significant growth to exceed $17bn for the first time at $17.24bn. This was a 28.65% increase year-on-year.

Ms Pannek said commercial and equipment finance remained a significant opportunity for mortgage brokers to expand their service offering to both their existing home loan clients and new clients.

Proportion of female brokers falls again

The proportion of female brokers in the industry has fallen again but only slightly, dropping from 25.5% to 25.4% during the period.

This is the lowest level since the measure has been tracked.

“It’s essential for the long-term sustainability and relevance of our industry that we nurture an environment that is welcoming to people from all walks of life,” Pannek said.

“The continued underrepresentation of women in mortgage and finance broking is an issue we are continuing to work with industry on and provide resources to help businesses take positive steps on diversity and inclusion.”

Nationally, the average total broker remuneration, prior to costs, was $195,356, a 3.89% increase year-on year. This figure includes an average of $123,803 in up-front commissions and $71,553 in average trail commissions.

The report also revealed that the major bank lender market share rose to 47.2%, up 2.2 percentage points year-on-year. This increase came following two consecutive quarters of decline.

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