The record share of borrowers turning to mortgage brokers shows Australians value broker services and is no surprise, says non-bank lender Resimac.
Figures released by the MFAA yesterday (Thursday) showed brokers settled 59.7% of mortgages in Australia within the January to March 2019 quarter; this was a rise of 4.4% compared to the same quarter in 2018.
Resimac’s general manager of third party distribution, Daniel Carde, said the results show that Australians truly value the services provided by the mortgage broking industry.
“The market has spoken,” he said. “These figures are testament to the hard work and high standards maintained by Australia’s mortgage brokers.
“In these uncertain times, people appreciate the role of brokers as trusted advisers, providing choice, including access to lenders like Resimac, and guidance for their customers.”
Carde said the mortgage broking industry had been through one of the “toughest periods of uncertainty in its history” and that the data was testament to its strength.
He added, “With all that brokers do, it is no surprise that their share of the mortgage market has grown. Resimac is committed to supporting the broker community by offering a range of mortgage solutions including alternate home loan options to customers who may not meet traditional lending criteria and sharply priced prime loans.”
Data has also shown that out of those 59.7% of borrowers who use brokers, more than 90% of them are happy with the service they receive.
Strongest customer vote of confidence
Mortgage Choice chief executive officer Susan Mitchell said she was delighted in the results.
“The MFAA data is a true reflection of the trust consumers place in the ability of mortgage brokers to meet their needs and a testament to high calibre of professionalism within this industry,” she said.
Mitchell added that with “what must be described as the strongest customer vote of confidence yet in the mortgage broker channel, the future looks bright for the country’s 17,000 brokers”.
According to Deloitte Access Economics, the broking industry contributes $2.9bn to the Australian economy per year.
For Mitchell, these figures emphasise the significant contribution the mortgage broking channel delivers to the economy despite a weaker overall property market and tougher lending practices and restricted credit.
“Brokers enable Australians to invest in property and secure the home of their dreams because they offer choice, expert advice and valuable services during the increasingly complex journey to home ownership,” she said.
“As housing affordability continues to challenge many home buyers, brokers perform a vital service at no cost to the borrower. This includes a unique combination of choice and price discovery, coupled with the experience and expertise to help guide them through an increasingly complex environment.”
Sending a strong message
Releasing the market share data, MFAA CEO Mike Felton said it was particularly notable given it coincided with the release of the royal commission final report and during a period of tough market conditions.
“This is a remarkable outcome for the mortgage broking channel,” Felton said. “To record the highest market share in the history of this survey during a period of restricted credit highlights the key role brokers have played in driving competition, choice and access to credit by stepping in to find solutions and provide critical assistance in the redistribution of credit demand.
“The fact that customers have continued to vote with their feet during a period that coincided with the release of the Royal Commission final report also highlights the strength of this market share result and sends a strong message to policymakers as to the extent to which consumers value the greater industry experience and choice that mortgage brokers provide.”