Around two in three homebuyers have taken advantage of mortgage brokers in their quest to find a home loan that fit their needs.
According to a study from Mortgage & Finance Association of Australia (MFAA) and CoreLogic, mortgage brokers facilitated 66.9% of all new residential home loans between July and September 2021.
This recent figure was higher than the previous record of 60.1% achieved during the same quarter last year.
The growth in the share of broker-originated home loans reflect a value of $93.4 billion settled loans in quarter, which was a 62.5% increase on a yearly basis.
MFAA CEO Mike Felton said ongoing referrals from clients were the driver of the growth in broker share, demonstrating the positive policy changes made across the sector.
“This market share is appropriate recognition of an industry that has implemented significant reforms which continue to drive consumer trust and confidence in the mortgage broking sector,” he said.
Interestingly, these robust results from the broker segment coincided with the extended lockdowns in New South Wales and Victoria.
“Not only do mortgage brokers provide consumers with choice, experience and convenience, they now provide an unrivalled Best Interests Duty which further differentiates our channel and provides yet another compelling reason to use the services of a mortgage broker,” Mr Felton said.
Furthermore, the increasing share of broker-originated mortgage loans reflect the impact of improved lender turnarounds in the broker segment.
“This result also reflects the improvement in lender application approval turnarounds in the third quarter and highlights the type of broker market share that can be achieved when lender turnarounds for broker introduced business are less stifled,” Mr Felton said.
Collections: Mortgage News