Mortgage brokers record highest ever December quarter market share
The mortgage broker channel has recorded its highest ever market share result for the December quarter with brokers settling 59.4 per cent of all residential home loans during October – December 2020, according to the latest data released by research group comparator, a CoreLogic business, and commissioned by the MFAA.
The December 2020 result is 4.1 percentage points higher than the equivalent 2019 quarter, 2.6 percentage points higher than the equivalent 2018 quarter, and only 0.7 of a percentage point lower than the all-time market share record of 60.1% set in September 2019.
The value of new settlements recorded in the December 2020 quarter is also the largest by dollar value ever observed, as leading aggregators settled $64.10 billion of new home loans. This represents a substantial increase of $12.17 billion or 23.44% in the value of new lending when compared year-on-year to the $51.92 billion settled in December 2019.
MFAA CEO Mike Felton said the result demonstrates the strong performance of mortgage brokers in maintaining the flow of credit as the economy and activity in the housing market recovered strongly from the worst of the pandemic inflicted downturn.
“This outstanding market share result, in the traditionally less-buoyant December quarter, reflects the continuing hard work of brokers in supporting their customers to achieve their aspirations and assisting many to refinance and take advantage of record low interest rates, making mortgage repayments more manageable,” Mr Felton said.
“In addition to providing support during the most difficult months of 2020, this result shows how mortgage brokers were able to facilitate the flow of credit which was so vital to the continuing national recovery as the housing market showed further signs of growth and borrowers re-emerged, including a spike in first home buyers.
“As always, I am incredibly proud of the work our industry does to support the economy and help customers realise their home ownership dreams, particularly against the backdrop of such challenging circumstances.
“We now look forward to a promising year ahead as the market continues to recover and the mortgage broking industry experiences further gains in consumer trust and confidence from the introduction of a Best Interests Duty and related reforms, that serve to further differentiate and highlight the value of the broker proposition.”