Mortgage brokers facilitated a record high 66.9% of all new residential home loans across Australia throughout the third quarter of 2021 according to the latest data released by the Mortgage and Finance Association of Australia (MFAA).

The result lies 6.8 percentage points higher than the previous record of 60.1% achieved in the third quarter 2020, and a 12 percentage increase from the 54.9% achieved in 2019's third quarter.

Compiled by CoreLogic research group Comparator, the data calculated the value of loans settled by 18 leading brokers and aggregators as a percentage of the ABS Housing Finance commitments.

The total value of mortgages settled by brokers saw the largest quarter-on-quarter and year-on-year increases since reporting began.

The data from MFAA reported a record high $93.42 billion in loans settled through the quarter, representing a 62.5% year-on-year increase on the $57.47 billion settled in the same quarter in 2020.

MFAA Chief Executive Officer, Mike Felton, said the results were the result of ongoing referrals from satisfied customers benefiting from both the service their broker is providing and the positive policy changes made across the sector.

"This market share is appropriate recognition of an industry that has implemented significant reforms which continue to drive consumer trust and confidence in the mortgage broking sector," Mr Felton said.

"What makes this result even more remarkable is that it coincided with extended periods of lockdown in New South Wales, Victoria and other states."

See also: What are mortgage brokers?

Home loan deferrals decreasing

Data released Tuesday by prudential regulator APRA shows the number of home loan deferrals resulting from hardships faced during COVID has decreased across each state from September to October 2021. 

Housing Deferrals.JPG

Source: APRA

With $8.5 billion in loans deferred between home loans and small and medium enterprise (SME), home loans represented 85% of total loans subject to repayment deferral at $7.2 billion.

This accounted for 0.5% of total home loans across Australia at the end of October.

Still, higher-leveraged loans are more likely to defer: housing loans with LVRs of 90% or higher account for just 5% of the total market, yet make up 8% of deferrals.

Small and medium enterprise (SME) loans subject to repayment deferral accounted for at $926 million, 0.4% of total SME loans across Australia at the end of October. 

The latest deferral data is in contrast to mid-2020 where at one stage upwards of one in ten residential mortgages were deferred, amounting to nearly $200 billion.

Image by Mohamed Hassan via Pixabay

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