SPECIAL REPORT BUSINESS STRATEGY
TOP BROKERAGES 2021
BROKERS PROVE THEIR WORTH AFTER AN incredible year of brokers helping borrowers through one of the most challenging environments in a generation, MPA has expanded its Top 10 Brokerages list to celebrate even more brokers. This year, there are 25 brokerages in this prestigious list boasting astonishing figures. These results are an indication of just how busy the mortgage broker industry has been over the past 12 months. The number one brokerage in 2021 increased its value of loans by 27% this year. The rise in loan settlement values reflects the remarkably strong housing market of the past 12 months. While brokers started the
year concerned that demand for home loans would fall, sentiment changed as the market instead saw an influx of new borrowers and customers wanting to refinance. In May 2020, the value of total loans for new housing was $16bn. Since then, this value has only continued to grow, reaching more than $30bn in March 2021. While the number of new loans for housing dropped to their lowest point last May, refinancing was already strong as the national lockdown and restrictions made borrowers cautious. In 2020, external refinancing grew from $6.2bn in February to $9.4bn in May. It grew again in June, to
TOP BROKERS BY STATE AND TERRITORY
Queensland
Western Australia
2
4
South Australia
New South Wales
14 Victoria
46
$9.8bn, before dropping to $7.3bn in July – which was still much higher than preCOVID values. Refinancing levels are still strong: March 2021 saw another month of $9bn-plus worth of external refinancing. The highest value to date of internal refinances, which surpassed $5.8bn, was also recorded in March.
Cash rate, incentives boost demand
1
2
The rise in loan settlement values reflects the remarkably strong housing market over the past 12 months
2 Australian Capital Territory
A combination of factors have contributed to the increase in both new home loans and refinances – most notably record-low interest rates. At the start of 2020, the RBA’s cash rate was at 0.75%; this dropped to 0.25% in March and fell again to 0.10% in November. From 2016 to 2019 the RBA had held the cash rate at 1.50%, but banks at the time were announcing out-of-cycle rate hikes due to global funding pressures and regulatory requirements. Now, banks have been passing on rate cuts, and borrowers are keen to take advantage.
www.mpamagazine.com.au
45-53_MPA 2106_Top Brokerages.indd 46
01/06/2021 9:00:54 am