Mortgage brokers recorded their highest market share result in over a year by facilitating 57.0% of all new residential home loans in the April to June 2020 quarter, a feat which is additionally commendable as the period is traditionally the most subdued quarter of the year.
According to the latest research commissioned by the MFAA, mortgage brokers settled $52.8bn of new home loans during the June 2020 quarter – the largest observed result by value for any quarter since the MFAA first reported this data.
“Unlike previous years, June 2019 to June 2020 has shown a significant increase of $10.51bn or 24.85% in the value of new lending when compared year-on-year to the $42.29bn settled in June 2019,” explained MFAA CEO Mike Felton.
“Period-on-period, the June 2020 quarter also recorded a 4.9 percentage point increase from the March 2020 quarter which is an outstanding result considering that the June quarter is traditionally the low point in the cycle for broker market share.”
The robust figures reflect the “outstanding work” brokers have been doing to assist customers across the country despite the considerable challenges of recent months, according to Felton. Whether borrowers have been experiencing hardship or seeking to take advantage of record low interest rates, the broker channel has clearly been rising to the task.
“As COVID-19 has impacted many Australians, mortgage brokers have been working diligently with their clients to ensure they are in the best possible position to ride out the storm and improve on their current debt situation,” Felton added.
“More broadly, this is further proof of the importance of mortgage brokers to the wider economy and community. With natural disasters, a global pandemic and now a significant economic downturn, 2020 has been a year full of challenges. That’s why it is so pleasing to see brokers continue to have a positive impact on the economy and their clients in such difficult times.”