The share of mortgages written by mortgage brokers between October 1, 2021, and March 31, 2022 has reached a record high of 69.5%. Meanwhile, the value of residential home loans settled during this period set a new benchmark of $177.07 billion.
In the previous quarter (April 1, 2021, to September 30, 2021), the Mortgage & Finance Association of Australia (MFAA) reported mortgage brokers market share was 66.9% and the broker channel settled $165.96 billion in residential home loans.
The MFAA has now released the Industry Intelligence Service (IIS) report 14th edition, drawing on data supplied by 11 of the industry’s leading aggregator brands and providing broker and industry performance and demographic data for the six-month period from October 1-March 31.
Read more: Brokers break home loan settlement record
“Through the data in the IIS report, we can clearly see that mortgage and finance brokers are trusted by Australian consumers to guide them through what is arguably one of the most significant financial decisions they will make,” said MFAA CEO Anja Pannek (pictured above).
“The IIS highlights the continued customer focus of the industry, with brokers at the forefront in finding lending solutions for Australian homebuyers and business owners.”
The report found the number of mortgage brokers also writing commercial loans continued to reach new highs during the period, indicating brokers are diversifying their service offering to their customers.
Nationally the average total broker remuneration, prior to costs, rose 20.78% year-on-year to $195,534. This figure is made up of an average in up-front commissions of $123,892 and $71,642 in average trail commissions.
The major banks and regional banks owned or aligned by the major banks both saw a drop in market share during the March quarter, reducing to 42.6%, or 3.2 percentage points, and 10.6%, or 1.2 percentage points, respectively.
Read more: New MFAA CEO seeks greater broker market share
Despite these positive trends, the report found the gender diversity of the industry continues to stall as the proportion of female brokers was 25.5% during the period, the lowest on record.
“While women are joining the industry, it is not at the same rate as men. To compound this, we are seeing women leave the industry at a greater rate than men,” she said. “These observations highlight that we need to continue our efforts to support women and diversity more broadly to both recruit and, more importantly, retain talent in the industry.”
