Brokers bucked the trend in what is normally a slow season by delivering better than expected results in loan originations.
Mortgage brokers originated 53.6% of new residential home loans during the March 2017 quarter, according to ‘comparator,’ a CoreLogic research group.
The results are based on data sourced from 19 leading brokers groups and aggregators. This was an increase from the 51.9% result in the December 2016 quarter, and is only slightly down from the same quarter in March 2016, which was 53.7%.
Finance brokers originated an estimated $46 billion in new home loans, including home loan refinancing, in the March quarter this year. This result represents the largest by value ever for this particular quarter, which is historically the “low point” by value for the calendar year, the report said.
“We typically see a good relative result for broker market share in the March quarter, and this quarter is particularly important as it follows a period of increased prudential focus on interest only loans and ongoing attention on investor lending, both of which have had an impact on the broker channel,” MFAA CEO Mike Felton said in a statement.
“This market share figure reflects the strong consumer outcomes that brokers continue to deliver, further backing up the high satisfaction ratings that brokers receive in other qualitative feedback,” Felton added.
The quarterly figure is based on the value of loans settled through 19 of the leading aggregator groups as a percentage of the ABS Housing Finance commitments.