Mortgage brokers settled 55.7 per cent of all Australian home loans during the September quarter, according to data compiled by comparator and released by the Mortgage and Finance Association of Australia, the national body representing finance brokers.  

The result compares with 53.6 per cent for the same period last year.

"Borrowers are increasingly looking for face-to-face mortgage advice from a professional they can trust," John Flavell, CEO of Mortgage Choice, told SCHWARTZWILLIAMS. 

"I believe brokers will continue to play a pivotal role in the mortgage market and, as a result, we will continue to see their market share grow. How much their market share will grow, however, is anybody's guess," he said.

“The broker share of the residential market is now at an all-time record which is reflective of the excellent value and service the broker model delivers,” said Mike Felton, CEO of MFAA.

A record $51.77 billion worth of residential home loans were settled by mortgage brokers in the September 2017 quarter, a 6.6 per cent increase on the $48.57 billion recorded in the September 2016 quarter.

With growing complexity of the mortgage market and individual requirements, borrowers are turning to brokers in increasing numbers, said Flavell.

"Borrower needs are complex. Customers no longer have vanilla home loan needs. They have complex loan requirements that demand professional advice," he said.

Flavell says that while some see the emergence of online mortgages as a threat to the industry, Mortgage Choice sees there is demand for this channel.

"Some market commentators have argued that online mortgage providers are a threat to the industry, but we see this channel as an opportunity."

Borrowers can now talk to brokers "through any channel at any time," he said.

Flavell said increased scrutiny from ASIC will help brokers continue to deliver "excellent outcomes".

comparator compiles the broker statistics quarterly by calculating the value of loans settled with 19 leading brokers as a percentage of ABS Housing Finance commitments. 

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