Mortgage brokers continued to hold their market share above 40% of the $24.1 billion worth of home loans written during the March quarter - and are on track to break through the $100 billion barrier of home loans written during the 2013 calendar year, according to research of the top 16 aggregators in the industry by research group comparator.
MFAA CEO, Phil Naylor, says brokers continue to lift their presence as a ‘highly effective’ distribution channel for both large and small lenders, well supported by borrowers.
“If we extrapolate the results of the 16 aggregators to the whole broker channel, we believe the total market share of the mortgage broker channel is now around 45%.The major lenders continue to invest in the broker model, with ANZ reporting last week that brokers held about 46% of the loans written by the major four banks.”
“These market share numbers,” says Naylor, “compare very favourably with those overseas, with Canada at about 27%; the US under 40% and New Zealand at 25%, while the UK penetration of brokers still sits at about 50%.”
Naylor adds that, while brokers’ share of the market has slipped in other countries, Australian brokers continue to build momentum as a vital channel for lenders and borrowers.