Consumers continue to select brokers

Consumers continue to select brokers

The latest market share data sourced by the Mortgage & Finance Association of Australia (MFAA) reveals continued – and growing – consumer confidence in mortgage brokers.

Australian brokers settled $46.1 billion in residential home loans in the quarter to March 2018, which is the largest March quarter for the channel (by value) since data collection commenced in 2012.

“The data demonstrates that consumers continue to prefer brokers when seeking a home loan. While not surprising, this result is pleasing as it covers a period of negative public commentary following release of the Productivity Commission Draft Report into Competition in the Australian Financial System and the lead up to, and commencement of, the public hearings of the Royal Commission,” MFAA CEO, Mike Felton said.

The latest home loan market share figure of 55.3% is 1.7% higher than the March 2017 quarter (53.6%) – the highest March quarter figure, period-on-period, since data collection commenced.

“At a time when confidence in the entire financial sector is in question, customers continue to flock to mortgage brokers, which in my view is a clear reflection of the positive customer outcomes being produced,” Mr Felton said.

“The data collected shows that for more than five years, broker clients have continued to refer brokers to other consumers as indicated in the growth of market share, which is a true measure of customer satisfaction. This ongoing growth rate is a strong affirmation of the broker value proposition and my thanks go to all brokers who are the cornerstone of the industry’s success,” he added.

Research group ‘comparator’ (a CoreLogic business) compiles quarterly broker statistics by calculating the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS Housing Finance commitments. The MFAA releases these statistics each quarter.