Broker market share to reach 80%, says LMG

The aggregator recently released its 2025 Trends to Watch report, which said eight in 10 borrowers are expected to turn to a broker this year.

It could prove the most important period yet for the industry, with LMG executive chairman Sam White labelling 2025 “the year of the broker.”

“Australians are increasingly turning to brokers for expert advice and guidance in a complex lending environment,” said White.

“As Australia’s largest aggregator, we are in a unique position to witness the increasing popularity of brokers with the Australian public first-hand. While we are pleased to see the ‘broker’ become universally known, this does not mean that we can rest on our laurels going into a new year.”

According to LMG, there are seven trends expected to shape broking this year:

1. Brokers: The go-to choice for lending solutions: Australians are looking for trusted advisers more than ever, with brokers expected to surpass their 2024 share of 74 per cent of the residential loan market.
2. Confidence on the rise with wage growth and easing inflation: Wage growth and strong employment are boosting buyer confidence, but affordability challenges persist. Brokers will be key in navigating these hurdles.
3. Harnessing AI for smarter broking: Tech-savvy brokers will streamline processes and deliver sharper, more personal advice, leveraging AI and automation to drive business growth.
4. Interest rate cuts on the horizon: Expected rate cuts in late 2025 will provide relief for borrowers and brokers will be instrumental in helping clients make the most of these shifts.
5. Opportunities in commercial lending: Non-bank lenders and innovative investment funds are gaining traction, giving brokers new ways to support commercial clients.
6. Cyber security remains critical: Brokers must stay ahead of sophisticated cyber threats and LMG is investing in advanced tools to ensure secure transactions and data privacy.
7. Financial literacy takes centre stage: Educating clients isn’t just a value-add; it’s becoming essential for brokers to foster trust and build long-lasting relationships.

“With more Australians than ever relying on brokers for lending solutions, it’s clear our industry is no longer just a convenient option – it’s the trusted path to better outcomes,” said Loan Market CEO David McQueen.

“This growing reliance is a testament to the value brokers bring in navigating complexity and delivering tailored advice. But with opportunity comes responsibility. In 2025, it’s not just about staying informed – it’s about staying ahead.

“From harnessing technology like AI to fostering financial literacy and adapting to market shifts, the brokers who lean into these challenges will thrive.”

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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