The mortgage brokerage industry continues to cement its status as the go-to option for home loan borrowers, with recent figures from the Mortgage & Finance Association of Australia (MFAA) revealing a record-high broker market share of 74.1% for the January to March 2024 quarter. This surpasses the previous high of 71.8%, set in the October to December 2023 quarter, demonstrating the growing reliance on mortgage brokers by Australian homebuyers.
“The value mortgage brokers offer their clients cannot be underestimated. They have brought choice and competition to the market, and act in the best interests of their clients. Australians trust their mortgage broker.”
Mint Equity, an established mortgage brokerage firm, stands out in this thriving industry by providing exceptional services tailored to meet diverse borrowing needs. Specialising in home loans, investment loans, SMSF loans, commercial property loans, and loans for first-time homebuyers, Mint Equity also offers free buyer support services, setting a benchmark for client-centric mortgage solutions.
The rising popularity of mortgage brokers, as highlighted by the MFAA, underscores their crucial role in navigating the increasingly complex lending landscape. According to MFAA CEO Anja Pannek, “This result underscores the invaluable role mortgage brokers play in the Australian home lending market. Mortgage brokers offer personalised guidance and support throughout the entire home loan process, helping Australians navigate what is an increasingly complex lending landscape.”
The March 2024 quarter saw mortgage broker market share climb by 4.5 percentage points compared to the same period in 2023. Over a more extended period, this market share has surged by 22 percentage points since 2020, indicating a significant shift in borrower preferences.
Comparator, which compiles quarterly broker statistics for the MFAA, calculates these figures by assessing the value of loans settled by 15 leading brokers and aggregators as a percentage of Australian Bureau of Statistics (ABS) Housing Finance commitments. Pannek attributes this upward trend to the trust that mortgage brokers have built with Australian homebuyers.
“74% of all mortgages are arranged by a mortgage broker”
“Australians are making the choice to go through a mortgage broker, and it’s about more than an interest rate. Australians trust their mortgage broker. Not only are brokers bound by the best interest duty, they provide so much more than a loan,” Pannek emphasized. This trust is evident as brokers assist clients in increasing their financial literacy, offering strategic advice to optimise their budgets, and tirelessly working to find tailored solutions,” MFAA CEO Anja Pannek.
Mint Equity exemplifies these attributes, delivering comprehensive and personalised service to its clients. The company’s expertise in various loan types ensures that borrowers receive the best possible advice and options, whether they are purchasing their first home, investing in property, or seeking financial strategies through SMSF loans.
The value of loans written by mortgage brokers in the March 2024 quarter totalled $81.47 billion. While this represented a $12.59 billion decrease compared to the December 2023 quarter, it was still a 3.7% year-on-year increase and the second-highest value observed for a March quarter. These figures highlight the robustness of the mortgage broker industry and its essential role in the housing finance market.
The record-high market share of mortgage brokers is a testament to their indispensable role in the home loan sector. Companies like Mint Equity continue to lead the way by providing exceptional service, expert advice, and unwavering support to their clients. As the lending landscape becomes increasingly complex, the value of mortgage brokers in helping Australians achieve their homeownership dreams cannot be overstated.