New data has revealed the mortgage broker channel settled 60.1% of all residential home loans over the July to September 2020 quarter – the sector’s highest-ever market share result.
The new benchmark is 0.4 of a percentage point higher than the previous record of 59.7% achieved in March 2019, according to the data from research group comparator, a CoreLogic business, and commissioned by the Mortgage & Finance Association of Australia (MFAA).
Compared to previous years, the 2020 September quarter result is 5.2 percentage points higher than the same period in 2019 and 1.0 percentage point higher than the equivalent quarter in 2018.
MFAA CEO Mike Felton applauded brokers for showing up to support their customers – and the economy – “when they were needed most”.
“This phenomenal market share result reflects the tireless support and assistance brokers have provided their customers to help them navigate the challenges posed by the COVID-19 pandemic and the first recession Australia has experienced in 29 years,” Felton said.
“It is also evidence of the ever-increasing trust and confidence that consumers are placing in mortgage brokers as our industry faces the imminent introduction of a Best Interest Duty and related reforms.”
The CEO went on to express confidence the reforms will “differentiate [the] channel” and increase broker market share in the years ahead.
The value of new settlements recorded in the September 2020 quarter was also the largest ever observed by dollar value, as leading aggregators settled $57.47bn of new home loans – an increase of 24.82% in the value of new lending compared to the $46.04bn settled in September 2019.
“While I am always proud of the hard work and professionalism of everyone in our industry, the way brokers have overcome their own challenges and vulnerabilities this year, maintained their focus on their customer’s needs, while achieving their highest market share result to date, has been nothing short of inspirational,” Felton said.
Loan Market executive chairman Sam White also celebrated the record result, expressing excitement over hitting the milestone prior to 1 January and the commencement of Best Interests Duty.
"Today's news that industry market share has hit a historic high is a fantastic indicator of the hugely-valuable service mortgage brokers offer to everyday Australians,” he said.
“We’ve seen time and time again; customers turn to their brokers when they need information fast and we've seen this in play throughout COVID and all of 2020.
“After this date, customers will have a clear choice; deal with a broker who is obligated to work in the clients best interest or deal with a bank employee who isn't.”