The multibillion-dollar rise in broker settlements

The Mortgage and Finance Association of Australia (MFAA) released its industry snapshot for the period between 1 October 2023 and 31 March 2024. While a little late to the party, the data analysed the five years leading up to March 2024.

In the year to March 2018, the value of new home loans settled by brokers hit $200 billion. This grew by a whopping 79 per cent to $358 billion in the year to March 2024.

While we know market share is at its highest point (74.6 per cent), the growth in just a few years is significant. As of March 2018, brokers had a market share of 55.3 per cent.

Now, some estimates anticipate a market share of around 80 per cent by the end of 2025.

The national average value of home loans settled per broker has grown by 55 per cent between March 2019 and March 2024. What once totalled $5.2 million, as of March last year hit $8.1 million.

When placed as a figure, this was an average of 16 applications per broker. This was actually lower than September 2019 when the average was 17.1 applications.

The number of loan applications lodged has grown significantly, too. As of September 2019, there were 275,081 applications. In March 2024, this rose to 353,184.

In line with this was the number of brokers, with September 2019 recording 16,596. This climbed to 22,031 as of March 2024. This equates to around one mortgage broker per 1,224 people.

Even after accounting for seasonal adjustments, the value of home loans settled by mortgage brokers has climbed massively in the last few years.

As of June 2018, this figure stood at $49.5 billion. In January 2024, the total was $81.5 billion. This dropped from $94.1 billion the month prior.

One area that has seen a drop in recent years, however, is the average value of new home loans settled. As of March 2024, this figure stood at $9.1 million. The year prior, the average was $10.1 million.

NSW and ACT drive most of the value, with a total of $368.8 billion as of March 2024. Comparatively, some of the other states’ totals were:

• Victoria ($290.3 billion)
• Queensland ($169.5 billion)
• Western Australia ($110.2 billon)
• South Australia ($62.7 billion)

In the year to March 2024, most states saw an increase in loan book values, with the national total growing 6.17 per cent. However, while most states and territories grew, some saw a dip:

• South Australia (up 11.56 per cent)
• Queensland (up 8.65 per cent)
• Victoria (up 6.95 per cent)
• NSW and ACT (up 5.96 per cent)
• Western Australia (up 1.42 per cent)
• Tasmania (down 23.58 per cent)
• Northern Territory (down 55.48 per cent)

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.