The turbulent global mortgage climate has been challenging for many financial institutions. Mortgage brokers, though, are in a slightly more comfortable position thanks in part to structural changes in mortgage origination in the past decade, such as banking digitization. Those changes allowed new lenders to enter the market through innovative digital platforms, gaining share from larger incumbents, senior partner Joydeep Sengupta and colleagues explain. As a result, there has been an uptick in broker origination in several countries’ mortgage markets. This competitive landscape offers an opportunity for incumbents to collaborate with brokers for mutual benefit.
![Broker origination is increasing across global mortgage markets.](/~/media/mckinsey/featured%20insights/charting%20the%20path%20to%20the%20next%20normal/2023/dec/gifs/cod-mortgagemarket-v1-ex1-rj-timed.gif)
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Small multiples of 8 line charts show the share of broker originations in total mortgages from 2013 to 2022. Each chart represents a country, which are ordered from largest share in 2023 to least: UK, Australia, the Netherlands, New Zealand, Germany, Canada, France, and US. The charts show how broker origination is increasing across global mortgage markets.
Source: AFM Consumentenmonitor; Association of Financial Companies of Poland; Australian Prudential Regulation Authority quarterly statistics; Deutsche Bundesbank; Inside Mortgage Finance; Mortgage & Finance Association of Australia; OpinionWay/Vousfinancer survey, Feb 2022; UK Financial Conduct Authority.
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To read the article, see “Brokering growth in the mortgage market,” November 16, 2023.