New data by Deloitte Access Economics shows more people in Australia are choosing mortgage brokers over banks, when it comes to securing a residential home loan.
According to research commissioned by the Mortgage and Finance Association of Australia (MFAA), 59.7% of residential home loans secured between January and March 2019, were settled by brokers.
The record-breaking data is 4 percentage points higher than results reported for the same period this time last year, and 6 percentage points higher than in 2017.
So, besides making us feel good, what’s the point of sharing this? Well, the research also stated that, “mortgage brokers make mortgage markets better.”
Here’s more on what this means for borrowers.
MFAA CEO Mike Felton shared his views on why 3 in 5 Australians choose brokers to assist them with securing a home loan.
“According to Deloitte Access Economics, brokers have an average 13.8 years of industry experience and access to an average of 34 lenders which is a very different value proposition to that available through the branch network.”
The data also shows that although broker market share did increase, the total value of lending fell 11.39% to $40.85 billion (from $46.096 billion accrued during 2018 March quarter).
Felton said that despite a decline in the value of residential lending volumes, brokers continue to be ‘consumer champions’.
“This result clearly shows that mortgage brokers have been able to remain focused on their clients despite all the noise surrounding the industry and continue to deliver unparalleled service and choice to Australian consumers,” he said.
On the back of the report, the MFAA has predicted that over the next 5 years, broker market share will hit 75%.
“The MFAA expects broker market share will increase to between 70% and 75% in the next five years,” Felton said.
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