Brokers buck mortgage trend
Brokers buck mortgage trend

WA mortgage brokers have bucked the national trend, steering more business to the big banks.

June-quarter research collated by the Market Intelligence Strategy Centre showed the big four suffered significant erosion in their share of home loans delivered by mortgage brokers, winning only 59.8 per cent of business - as measured by value - during the quarter, down from 64 per cent the same time last year.

The significant fall may suggest that a major structural change in the broker-originated mortgage market is underway, according to MISC. The organisation, which collates loan data provided by banks and mortgage brokers, said smaller regional banks on the eastern seaboard were capturing business at the expense of the major banks. Regional banks had pursued an aggressive discounting strategy, particularly on fixed interest rate loans, and had kept cash-back incentives in place for lenders after moves by the big four banks with withdraw them.

But WA and South Australia both bucked the national trend, with the major banks capturing 56.5 per cent of mortgage broker originated loans, up from 54 per cent in the previous period.

The trend was greater in SA, where the majors increased their share from 65.7 per cent to 74 per cent of the value of broker business.

A spokesman for MISC said the strength of the local economy made the WA market more attractive to the big banks, which had pursued business more aggressively here. Gains in their market share had come at the expense of property development and real estate companies that also acted as lenders, the spokesman said.

Though the big banks increased their WA market share, WA mortgage brokers still steer less business to the majors than any other state in the country.

The West Australian

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