Australians turned to mortgage brokers in record numbers during the June quarter.
Research group Comparator found brokers originated 68% of new home loans in the June quarter, compared to 32% for lenders.
That was a record broker market share for the June quarter, and was significantly higher than the year before (59%) and the year before that (57%).
“This is an incredible result for mortgage brokers, particularly in an environment of rising interest rates and a slowdown in the property market,” said Mortgage & Finance Association of Australia CEO Anja Pannek.
“It is clear from the strong growth in the proportion of home loans written by mortgage brokers over the past few years that customers value the service mortgage brokers offer.
“Market conditions like we are seeing now further highlight the benefits of using a mortgage broker, who can explain the array of different lenders, products and options available to their clients.”
Why broker market share keeps rising
When interest rates are rising, like they are now:
- The average person’s borrowing capacity falls
- It becomes harder for new borrowers to qualify for a mortgage
- It becomes more important for existing borrowers to refinance to lower-rate loans
As a result, it is a good idea for consumers to shop around and tap into expert advice.
Unfortunately, when you go direct-to-lender, they will only be able to recommend their own products, even if they know there’s a better alternative. And they won’t be able to mention how your borrowing capacity might be higher at a rival bank.
Brokers, though, can compare home loans from dozens of different providers and recommend a lender that is suitable for someone with your unique profile.
Once you’ve chosen your preferred lender, your broker can then handle the intricate and time-consuming work of managing the loan application process.
I can compare the market for you and provide you with expert home loan guidance. Get in touch if you want to buy a property or refinance an existing loan.
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