This means that there is a greater likelihood that brokers will be able to source a lender to meet the loan requirements of their clients than they were earlier in the year.
According to data analysis by MBT Affordability, the affordability gap peaked in February, when there were no lenders able to meet the loan amount requested by a broker on 21% of cases.
However, on those cases where brokers have been unable to find the loan size requested by their clients, the average difference between the loan amount requested and loan amount offered peaked in August at 11%, up from 7% in March. This indicates that this group of clients are further away from accessing the loan size they want than they were earlier in the year.
Tanya Toumadj, CEO at Mortgage Broker Tools, said:
“The affordability gap is an important element of the MBT Affordability Index as it shows brokers the likelihood that they will be able to source a lender with the ability to meet the loan requirements of their client. The larger the Affordability Gap, the less likely that the market will be able to offer a solution, and vice versa.
“Of course, knowing whether a solution is available in the market and being able to source the right lender are two different things, and brokers who only work with a small number of lenders are less likely to identify the best lender for their clients. Which is why a platform like MBT Affordability is an invaluable tool in helping brokers to help their clients meet their objectives.”
