Brokers reach highest-ever market share

The Mortgage and Finance Association of Australia (MFAA) recently announced the updated broker market share, with 74.6 per cent of all new home loans being written by mortgage brokers in the September quarter.

The market share grew by 3.1 percentage points since September quarter last year. Further, the value of loans also reached a record high of $103.2 billion, a 10.2 per cent ($9.4 billion) increase from the year prior.

MFAA CEO Anja Pannek commented on the achievement, driving home how important brokers are in the lending space.

“This result continues to highlight that mortgage brokers are the preferred choice for borrowers navigating today’s complex lending environment. We know mortgage brokers are providing personalised guidance and support throughout the home loan journey, empowering borrowers to make informed decisions,” said Pannek.

“Australians are choosing mortgage brokers because of the trust they’ve built with their clients and the broad support they offer.

“It’s about much more than securing an interest rate. Mortgage brokers are bound by the Best Interests Duty and provide a wealth of value to their clients. They help borrowers understand their financial options, identify opportunities to adjust household budgets, and work tirelessly to find tailored solutions.”

With the number of borrowers choosing to see a broker only increasing, the value of the industry is as strong as ever.

“MFAA’s data demonstrates the indispensable role mortgage brokers play – not just for borrowers, but for lenders as well. This market share result reinforces that brokers are at the heart of Australia’s home lending system, driving access, competition, and personalised solutions in a dynamic and challenging environment,” said Pannek.

Speaking to Broker Daily, Pannek highlighted the potential for this market share to increase further if international markets are anything to go by.

“When we look to overseas markets in particular countries like the UK which are culturally similar, what we know is that mortgage broker market share is over 90 per cent,” she said.

“In Australia it has continued to increase, in particular since introduction of best interest duty. I absolutely believe this as a statistic will continue to increase.”

This new record high solidifies the value of mortgage brokers. Pannek said that the work of brokers is invaluable to borrowers.

“Overwhelmingly it comes down to trust. The home loan market has a lot of complexity: service buffer, interest rates, so seeking out the services of a mortgage broker just makes sense,” she said.

“Ever since the introduction of best interest duty they have regulatory protections. If you’re a consumer and you go to a broker you get transparency and what is out there for you. You get choice and you get the best service.

“Your broker is working very specifically with you and what is in your best interest. What brokers do is they drive competition. They create a market where lenders need to compete on price, on product and on service. Brokers care deeply about their clients.”

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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