A new report from the Mortgage and Finance Association of Australia (MFAA) has shown how brokers survived the onset of the COVID-19 pandemic and, indeed, thrived in spite of it.
The 11th edition of the MFAA Industry Intelligence Service Report (IIS), released this morning, charts how brokers fared between 1 April and 30 September of last year, encompassing the bulk of first set of lockdowns and the first Australian recession in almost 30 years.
It draws on information provided by 12 of the biggest aggregators and gives details on key movements within the broker channel.
Headline takeaways from the report show that the average value of home loans settled per broker grew by $500,000, average broker annual earnings went up by $10,000 and the total value of home loans settled grew up 24.5%, all based on comparisons to the same period in 2019.
The total value of home loans settled in Australia in the year ending September 2020 topped $200bn for the first time, while broker market share for new residential loan settlements was also a new peak.
“Mortgage brokers facilitated 57.0% of all new residential mortgages in the June 2020 quarter and recorded their highest ever market share of 60.1% in the September 2020 quarter,” said MFAA CEO Mike Felton.
“This result was indicative of a strong performance across the board from the nation’s mortgage brokers throughout the six-month period, as the average number of applications lodged per active broker jumped from 19.6 to 21.4, while the national average value of home loans settled per broker rose above $6.5 million for the first time in five years.
“The broker channel settled $107.51 billion in residential home loans for the six-month period, the highest six-month value recorded since the MFAA commenced reporting in 2015, up 24.5% year-on-year.”
“While average trail commission increased mildly compared to the previous year, up-front commissions grew by a significant 25.29%, reaching $84,758 for the period. This helped to achieve a healthy national average combined remuneration per broker of $151,772.
“Overall, April to September 2020 was a challenging and yet rewarding time for the mortgage broking industry, as brokers provided tireless support and assistance to their customers helping them navigate the challenges posed by the COVID-19 pandemic and the recession.”