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Last week, the Mortgage and Finance Association of Australia reported that the share of mortgages written by brokers hit a new high in June of 81.6 per cent, up 4 percentage points since June 2025.
Over the eight years covered by the MFAA’s survey data, broker market share has risen from 53.9 per cent in June 2018 to 81.6 per cent in June 2026 – an increase of 27.7 percentage points.
At the same time, home loan demand has softened in 2026, following three rate hikes and a federal budget that overhauled investor tax settings.
Credit reporting bureau Equifax reported that overall mortgage demand fell 16.4 per cent year on year in July 2026, while major banks have also reported softer mortgage flows.
Meanwhile, the MFAA said brokers facilitate around four in ten small business loans in Australia, and that the association's Industry Intelligence Service also found that almost one third of mortgage brokers were writing commercial loans, settling a record $22.68 billion in the six months to September 2024.
MFAA CEO Anja Pannek added: "While the residential and commercial markets are very different, these figures demonstrate both the strength of the channel and its significant opportunity for further growth.”
Indeed, while brokers remain a small part of the market relative to their share in residential mortgages, business lending is surging.
According to the Australian Prudential Regulation Authority (APRA), business lending hit a six-year high of $1.26 trillion in June, with $20 billion added during the month.
Another report published by the Australian Banking Association (ABA) found 40 per cent of SMEs sought finance from their bank, while credit provided by banks reached a record $750 billion in April 2026, up from $567 billion in April 2023.
Banks such as the Commonwealth Bank of Australia, Australia New Zealand Banking Group (ANZ), NAB, and Judo Bank have also recorded strong growth in their business lending books, and many businesses have reported that they are expecting to or are aiming to grow despite adverse economic conditions.
A tougher path to 80%
But while commercial finance represents a growing opportunity for brokers looking to diversify, replicating the level of penetration seen in residential lending may be a much harder task.
Speaking on the Finance Specialist podcast, Trent Carter, founding partner of Accendo Financial, said the diversity of commercial finance meant that any industry push into commercial would be a more multidimensional challenge.
“When you think about commercial, it’s made up of so many different things. It’s business lending, it’s unsecured working capital, it’s asset finance, it’s self-managed super fund on a commercial basis,” Carter said.
“To say that I’m going to diversify into all aspects of commercial is pretty hard. But then it’s also hard to say that you’re going to get that level of market share as a broker because there are some areas of banking that are just always going to be under-represented by brokers generally.”
Rethink Finance managing director Son Pham said the residential and commercial markets were unlikely to follow the same trajectory, given the specialist knowledge required.
“While this is great news for the residential market, I don’t see this being the case for commercial. Not all brokers are made equal. You need to demonstrate sound knowledge and experience firstly as a residential broker,” Pham said.
“You need to showcase to the commercial lenders your ability to understand SMEs, read financials, have a deeper understanding of policy and a higher level of knowledge.
“Banks do not accredit any broker that wants to write commercial loans. It’s a specialised segment. You need to get experience writing commercial loans with the tier two and non-bank lenders generally before a tier one major bank will accredit you.”
Pannek added: “Commercial finance can be complex, with different business structures, lender requirements and types of finance to navigate.
"However, many brokers already have trusted relationships with self employed customers and business owners, creating a strong foundation for growth."
A ready-made opportunity
Rather than attempting to capture every segment of commercial finance, Carter said the more immediate opportunity for residential brokers could be sitting among the business owners they have already helped with home loans.
“I think for brokers who potentially are looking at that, that’s the sweet spot. It’s a big swathe of underserved business owners out there that are the mum-and-dad business owners that you’ve probably done their mortgage for,” Carter said.
“It’s a simple translation to say, ‘Well, when was the last time you had a conversation with your business banker?’ Well, you probably haven’t, because you’re probably sitting in a portfolio inside a bank of 200 or 300 other business owners that are being managed by a call-centre, rather than having a direct, reliable business banking relationship.
“So there’s a massive opportunity for brokers. Twenty thousand brokers that are sitting out there in the marketplace, and there’s only around 4,000 frontline business bankers across the big four. Who’s got the better share?”
Carter said the opportunity was already present in many brokers’ databases, with self-employed borrowers representing a potential starting point.
“We’ve looked at the data time and time again through different aggregators as we’ve worked with them through Accendo and stuff like that. It’s 15–30 per cent,” Carter said.
“You’ve got a percentage of people in there who own a business. You’ve already helped them with a debt transaction before, so the relationship is warm.”
Finding the right entry point
Pham said that recent changes had “100 per cent” tipped the market further towards brokers.
“Most recent and major changes were from the 12 May Federal Budget,” he said.
“Borrowing capacities have been greatly reduced. Banks have stricter policies and borrowers need alternatives.
“Non-bank lenders need to compete with banks in a highly competitive market, so it’s not just the rate they compete on. It’s the differing policies that could turn a no into a yes.
“Borrowers won’t know this. They turn to brokers to achieve this.”
Pannek said that commercial finance was a "significant opportunity" for brokers to diversify, when given the tools to "capability carefully through education, mentoring and collaboration with experienced specialists."
For brokers seeking to move into commercial lending, Carter said the answer was not to immediately pursue every product and accreditation, but to start with transactions that have some familiarity with residential lending.
“It’s really hard to just flick the switch and say, ‘I’m going to be all things and all products,’” he said.
“I would think if you can pick a transaction that’s going to give you some level of exposure to the client’s profit and loss and balance sheet, they’re great transactions to start off on.
“With a little bit of training and education and mentoring, and even working with your BDM or your banker that you’re going to deal with, you very quickly get more confident with the set of financials when it hits your desk.”
For brokers looking to make the transition, Pham said commercial real estate could provide a clear entry point given the overlap with residential lending.
“In the commercial real estate segment would be the biggest opportunities. Residential brokers already have half of the knowledge and understanding, so it’s just a little bit more they need to learn,” Pham said.
“The different products, commercial lending policies, asset types, tenant profiles and leases, just to name a few. It’s more in-depth compared to residential, but the opportunity is there.”
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Take the first step to being recognised at a national level and submit an entry or nominate a worthy colleague and/or business by Friday, 4 September 2026, for a chance to secure this prestigious accolade.
[Related: Banks battle for SME lending as margins hit 5-year low]
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