Record $100 Billion in Mortgages Settled by Brokers in June Quarter

In the June quarter, mortgage brokers set a new milestone, settling over $100 billion in loans, marking a record-breaking achievement. This impressive figure, revealed by the Mortgage and Finance Association of Australia (MFAA), underscores the significant role brokers play in the mortgage market. 


According to the latest data, brokers managed to settle $100.11 billion worth of mortgages in the final months of FY24. This figure represents an $18.64 billion increase from the previous quarter and is up 12.96% from the $88.62 billion settled in the same period the previous year. It’s the first time brokers have surpassed the $100 billion mark in a single quarter.


The MFAA's report also highlights that brokers were responsible for 73.7% of all new residential home loans between April and June 2024. Although this was slightly down from the record 74.1% seen in the March quarter, it represents a notable rise from the 67.2% share recorded a year earlier.


MFAA CEO Anja Pannek noted the growing reliance on mortgage brokers during a time of financial strain for many Australians. "With the cost of living rising, every dollar in household budgets is crucial," Pannek said. "It’s vital for people to have proper support and advice when managing their home loans, which is precisely what mortgage brokers offer."


Pannek also pointed out that despite a pause in cash rate increases, high property prices continue to challenge those looking to enter the market. "Mortgage brokers are dedicated to helping clients become 'finance-ready' and offer a broad range of home loan options," she added.


The MFAA's data reflects a broader trend in the industry. Major aggregators like AFG and Connective have also reported record-breaking volumes in mortgage settlements for the financial year ending June 2024. While both aggregators observed substantial growth in commercial and asset finance lending, this sector is expanding more rapidly than residential home lending, though it started from a lower base.

Record $100 Billion in Mortgages Settled by Brokers in June Quarter Record $100 Billion in Mortgages Settled by Brokers in June Quarter Reviewed by Australian Finance News on September 09, 2024 Rating: 5

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