Broking’s road to dominance and what comes next

According to the MFAA Quarterly Market Share Report, broker share for the March quarter hit 81 per cent, the highest level since records began more than a decade ago.

The result marks another milestone in what has been a sustained growth trajectory for the channel.

Trust, complexity, and support

Director and principal of Mortgages Plus, Chris Dodson, said rising lending complexity and entrenched consumer trust had helped push market share to new heights.

“The best interest duty gives borrowers something banks can’t, a legal obligation to act for them rather than the lender,” he said to Broker Daily.

“Lending has also become much harder to navigate. Servicing buffers, niche policies, lenders moving in and out of segments.

“Five years ago a broker saved you time. Today a broker often gets you an outcome you wouldn’t get on your own.

“Plus, nobody wants to sit on hold to a bank.”

Paolo Llave, senior broker at Berti Financial, said that brokers had become increasingly embedded in the borrower journey through the education, advocacy, and support they provide.

“Clients are looking for expertise, but they’re also looking for advocacy. They want someone who can navigate lender policies, negotiate on their behalf, explain complex strategies in simple terms, and continue supporting them long after settlement,” Llave said.

Llave said greater awareness of the broker value proposition had also contributed to the channel’s rise.

“Five years ago, many Australians still viewed brokers as an alternative to the bank. Today, for many people, brokers are the first option,” he said.

“Social media, online reviews, podcasts and financial education content have played a huge role in that shift.”

He also said that the complexity of clients’ demands was deepening, meaning that brokers are now often needed on an ongoing basis rather than as a one-off.

“Clients now expect ongoing guidance, not just a transaction. They want someone who can help them refinance, access equity, purchase investment properties, improve cash flow and adapt their strategy as their circumstances change,” Llave said.

The next frontier?

While residential mortgage market share continues to rise, the market itself is becoming increasingly saturated.

Commercial finance, however, remains an area where broker penetration has considerable room to grow.

While reliable figures on commercial finance broking are harder to measure, a 2025 MFAA report found around a third of residential brokers were also writing commercial loans.

Melissa Ashcroft, director of AAA Financial Group, said commercial broking was on a similar, albeit trailing, trajectory.

“I think commercial finance broking is where residential broking was 10–15 years ago,” she said.

“My clients are increasingly seeking independent advice, while lending solutions are becoming more specialised, some say confusing and fragmented.

“As a result, brokers are well positioned to capture a greater share of the commercial lending market over the coming years.”

Ashcroft said growing business funding requirements and an increasingly diverse lending market were creating opportunities for brokers.

“Businesses today require far more than a standard bank loan. Whether it’s working capital, equipment finance, development funding, SMSF lending, private credit or succession funding, business owners are looking for advisers who can navigate an increasingly diverse funding landscape and structure the right solution,” she said.

“The continued growth of non-bank and private credit markets is also creating opportunities for brokers to solve problems that traditional lenders either can’t accommodate or are unwilling to pursue.

“In many cases, brokers are becoming strategic funding advisers rather than simply loan arrangers.”

Barriers remain, however.

Ashcroft said both client awareness and broker capability still had room to develop.

“Many business owners still don’t realise they can engage a broker for commercial finance in the same way they would for a home loan,” Ashcroft said.

“There is also a skills gap within the industry, as commercial lending requires a deeper understanding of financial statements, cash flow, business operations and credit structuring.”

Pushing past 80%

As market share moves beyond four-fifths, the question naturally turns to how much further it can climb.

Dodson said market share in the mid-to-high 80s was achievable, but each additional percentage point would be harder won.

“The challenge from here is the remaining 20 per cent skews to simple digital-first refinances, and banks will fight hard for those direct,” Dodson said.

“Holding share also depends on the industry keeping its standards up. Every point past 80 per cent raises the stakes on quality and compliance.

“Client care and real relationships are the things a bank’s AI can’t replicate – that’s our moat.”

Llave said broker share could continue to rise as younger borrowers enter the market.

“They’re highly research-driven, comfortable using digital platforms and more likely to seek independent guidance before making financial decisions,” Llave said.

“Ultimately, the future growth of broking will depend on maintaining public trust. If the industry continues to put clients first and deliver strong outcomes, I don’t see any reason why broker market share can’t continue increasing in the years ahead.”

[Related: Embrace ‘ferocious curiosity over convention’, brokers told]

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