Brokers remain in box seat when it comes to new home loans

Brokers Remain in Box Seat When It Comes to New Home Loans

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender in November 2023, highlighting the resilience of the broking industry through one of the most difficult rate environments Australian mortgage holders had faced in years.

Despite the RBA delivering a succession of rate rises that placed real pressure on household budgets, the MFAA’s Industry Intelligence Service report for the 12 months to March 2023 showed mortgage brokers settling a record $358.68 billion in home loans. Broker market share reached 69.6 per cent of all residential home loans written in the March 2023 quarter, at the same time as the major banks saw their combined share fall to 45.8 per cent.

The period covered by the report was particularly intense. Fixed rate mortgages were reverting to much higher variable rates, serviceability was tightening and property prices in some markets were moderating. These conditions created a surge in refinancing activity as borrowers sought better deals and more flexible structures. Brokers were well placed to help, and the data showed they responded accordingly.

While the total value of loans settled by brokers declined 8.63 per cent compared to the equivalent period in the prior year, the overall home loan market contracted by 10.89 per cent across both broker and proprietary channels. The broker channel was not just holding its own, it was outperforming the market even in a challenging environment.

Bell Partners Finance, now Evolve Lending & Finance, remained active throughout this period helping clients negotiate better rates with their existing lenders or move to more competitive products elsewhere.

Whether you are dealing with a rate revert, looking to refinance or simply want to make sure your current loan is still working for you, contact Evolve Lending & Finance.