Mortgage broker market share reaches highest level ever

71.8% of all home loans written by brokers, says MFAA

Mortgage broker market share reaches highest level ever

The popularity of mortgage brokers amongst homebuyers is at an all-time high, with a record-breaking 71.8% of all new residential home loans being written by brokers between October and December 2023.

The latest market share data released by the MFAA is the highest result observed since the measure has been recorded. The previous high was 71.7%, recorded in the September 2022 quarter.

MFAA CEO Anja Pannek (pictured above) said that mortgage brokers consistently provided outstanding service to their clients and this latest record-breaking market share was a clear reflection of their commitment, professional approach and the trust Australians placed in their brokers.

“Mortgage brokers play a pivotal role in the home loan market, providing their clients with a broad spectrum of choices and expert guidance,” Pannek said.

“It’s very clear from the continued growth in market share that Australians value this support when making important financial decisions around buying a home or investing in property.”

Pannek also noted that the latest lift in mortgage broker market share stood in contrast to historical trends traditionally seen in the December quarter.

Market share bucks trend for December quarter

Since the MFAA started reporting mortgage broker market share in 2012, this is just the third time the December quarter market share has increased compared to the preceding quarter.

“Market fluctuations are normal, and we do tend to see a slight dip in mortgage broker market share at the end of the calendar year as activity in the property market declines,” Pannek said.

“Mortgage brokers offer support and guidance regardless of the time of year, and with interest rates elevated, property prices increasing and cost of living pressures it makes sense for borrowers to talk to their mortgage broker.”

In the December 2023 quarter, mortgage broker market share rose 0.3 percentage points from the September quarter.

In comparison to the December 2022 quarter, mortgage broker market share rose 2.5 percentage points, and 5.3 percentage points when compared to the December 2021 quarter.

The value of loans written by mortgage also rose during the December 2023 quarter with mortgage brokers settling $94.06 billion in home loans – a 5% increase year-on-year increase.

It was also the third consecutive period of growth since settlement values dipped to $78.59 billion in the March 2023 quarter.

Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 15 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments.

What do you think of the latest record-breaking market share for brokers? Can it go even higher? Comment below