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‘Records broken’ as broker market share rises

Almost 70 per cent of mortgages in Australia were being written by brokers earlier this year, according to the MFAA’s latest Industry Intelligence Service report.

A record 69.5 per cent share of broker-written mortgages and $177.07 billion in settled residential home loans were highlighted in the 14th edition of the Mortgage and Finance Association of Australia (MFAA)’s Industry Intelligence Service report (IIS).

Broker trust, service diversification and sundry records broken were just some of the key points found. The report drew upon data supplied by 11 of the industry’s leading aggregator brands and provided broker, industry performance and demographic data between 1 October 2021 and 31 March 2022.

Throughout the six-month period a number of records were broken, most notably the share of mortgages written by brokers, the MFAA revealed. Indeed, this reached a record high of 69.5 per cent in the March 2022 quarter. 

Additionally, the value of residential home loans settled reached a record high of $177.07 billion, it confirmed.

Broker market share has continued to dominate more recently, too, with the MFAA's latest quarterly data (for the three months ending June 2022) showing that mortgage brokers settled $96.08 billion of home loans during the quarter - the highest quarterly figure on record.

“Through the data in the IIS report we can clearly see that mortgage and finance brokers are trusted by Australian consumers to guide them through what is arguably one of the most significant financial decisions they will make,” said MFAA chief executive Anja Pannek.

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The number of mortgage brokers also writing commercial loans also continued to reach new highs during the period, indicating brokers are diversifying their service offering to their customers.”

Despite these positive trends, the gender diversity of the industry continues to stall, it noted. The proportion of female brokers was 25.5 per cent during the period, the lowest on record.

“While women are joining the industry, it is not at the same rate as men,” said Ms Pannek.

“To compound this, we are seeing women leave the industry at a greater rate than men. 

“These observations highlight that we need to continue our efforts to support women and diversity more broadly to both recruit and, more importantly, retain talent in the industry.”

The raw numbers in focus

Nationally, the average total broker remuneration — prior to costs — rose 20.78 per cent year-on-year to $195,534 — a figure derived from an average in upfront commissions of $123,892 and $71,642 in average trail commissions.

The major banks and regional banks owned or aligned to the major banks both saw a drop in market share during the March quarter, reducing to 42.6 per cent, or 3.2 percentage points, and 10.6 per cent, or 1.2 percentage points, respectively.

“The IIS highlights the continued customer focus of the industry, with brokers at the forefront in finding lending solutions for Australian homebuyers and business owners," said Ms Pannek.

National body the MFAA represents finance brokers, mortgage managers, lenders, aggregator/broking groups and other industry participants, assisting them to develop, foster, and promote the mortgage and finance industry in Australia.

[Related: Clawbacks v cashbacks: New MFAA CEO speaks]

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