iscover
iscover 
A new survey has revealed that more than 80 per cent of mortgage holders feel either positive or neutral about their financial outlook.
Conducted in February 2025, the Member Sentiment Survey was carried out by the Mortgage & Finance Association of Australia (MFAA), the peak body for the mortgage and finance broking industry.
The national survey of mortgage brokers indicated that many home loan borrowers are still concerned about their ability to meet payments.
However, the number of brokers reporting that more than 10 per cent of their clients are stressed about mortgage repayments has halved over the past 12 months, from 49 per cent to 24 per cent.
Results from the survey showed a sense of cautious optimism, with 49.8 per cent of clients feeling “neutral” about their outlook and 32.7 per cent feeling “positive”.
Additionally, when brokers were asked whether their clients were finding it more difficult to refinance in the current environment, 42 per cent said clients are struggling, a marked improvement from 83 per cent 12 months ago.
Building on previous surveys from July 2023, February, and August 2024, this survey gathered insights from mortgage brokers on how they are supporting their clients and assessing the current economic climate.
Notably, this is the first time the survey has explored customer sentiment, gauging how mortgage holders feel about the economy and their financial confidence.
MFAA CEO Anja Pannek said that while the results indicate a “wait and see” attitude among borrowers, it is clear that their sentiment has improved since previous surveys.
“The two major themes that featured significantly in previous MFAA surveys were the number of broker clients finding it challenging to meet their mortgage payments, and borrowers who couldn’t refinance because of serviceability requirements,” Pannek said.
“There has been a huge amount of refinancing activity over the past 12 months as brokers worked with clients to restructure loans as the cash rate climbed, which may have helped clients understand serviceability buffers and refinance their loans. This, in turn, helps clients feel more confident.”
Under regulations from the Australian Prudential Regulation Authority (APRA), borrowers must demonstrate that they can meet mortgage repayments at 3 per cent above their loan rate, known as the serviceability buffer.
However, when refinancing, lenders may apply a 1 per cent buffer under certain conditions.
“While cost of living overall is still a key issue, brokers are reporting that mortgage holders are feeling better about their ability to pay their mortgage or refinance to a better deal, which is great news for Australians,” Pannek said.
“They have been buoyed by an improved interest rate environment with the Reserve Bank cutting the cash rate to 4.10 per cent in February, and the possibility of further cuts to come as the global geopolitical environment remains dynamic.
“Strong property equity levels and low unemployment are also boosting homeowner confidence – and as inflation eases, confidence rises.”
Further supporting the survey’s findings of increased refinancing, Pannek said that MFAA members had reported a rise in refinancing activity.
Data from the Australian Bureau of Statistics also corroborated this, revealing that the number of owner-occupier external refinances rose 12 per cent in the December 2024 quarter compared to the previous quarter.
“Brokers played a critical role when borrowers were doing it tough in an economy affected by high interest rates,” Pannek said.
“They educated their clients about being financially fit, helped negotiate better rates with existing lenders, consolidated debt to improve cash flow, or refinanced to a better product.”
[RELATED: Financial pressures grow for lower-income Australians in 2025]
