According to industry data from the Australian Bureau of Statistics (ABS), financial brokers completed about 56% of all residential mortgages in Australia during the 3rd quarter. Research from the Mortgage and Finance Association of Australia (MFAA) puts this figure at an all-time high, up from 53.6% during the same time frame in 2016.
Year-on-year, broker market share has increased by 2.1% from September 2016 and by 3.1% from September 2015. MFAA CEO Mike Felton expects this figure to increase further and is confident that broker market share will reach 60% in the next 3-5 years.
“The results suggest a rising trajectory for the broker-originated lending share and are further evidence of the trust and confidence consumers have in their broker”- MFAA CEO Mike Felton
He also added that looking at recommendations by the Australian Investments and Securities Commission (ASIC) in its broker remuneration review would further increase trust and confidence in the broker industry and pave the way for greater growth.
RFi Group research also supports these findings, with the influence and importance of brokers as both a research and application channel increasing over time.