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Described as a “landmark” report, The Value of Mortgage and Finance Broking 2025 report – prepared by Deloitte and commissioned by the Mortgage and Finance Association of Australia (MFAA) – has revealed that the mortgage broking industry generated $4.1 billion to the Australian economy in 2023–24.
The report builds on the findings of The Value of Mortgage Broking report released in 2018, and collected responses from almost 900 brokers, including interviews with brokers, aggregators and lenders.
Additionally, the industry was found to support the employment of 37,349 workers, with its economic contribution being 14 per cent higher than the previous report (adjusted for inflation).
Along with the economic contribution, the report found that the industry also generated “substantial social benefits beyond its quantified economic contribution”, such as supporting job opportunities in rural and remote communities, increased home ownership for first home buyers or other vulnerable customer segments.
Furthermore, the report stated that many brokers have also implemented social responsibility strategies to give back to their communities.
MFAA CEO Anja Pannek said the report paints “a complete picture of the evolving mortgage and finance broking industry and its contribution to the Australian economy”.
“It shows that the industry has responded well to a raft of regulatory reforms, in particular the changes arising out of the banking royal commission.
“The mortgage broker best interests duty (BID), introduced in 2021, has only strengthened the trusted relationships brokers have built with their clients. We see this through the increasing size of the industry and mortgage broker market share.
“More recently, in the midst of a heightened interest rate environment and cost-of-living pressures, brokers have helped borrowers navigate their options – for the better,” Pannek said.
Research leaders and Deloitte partners John O’Mahony and James Hickey further highlighted other key findings from the report, such as the industry’s response to BID, which has seen an improvement in trust in the sector according to 56 per cent of brokers.
O’Mahony added: “Secondly, mortgage brokers have increased their role in the Australian market, with 75 per cent of all new Australian residential loans arranged by brokers in 2024, up 18 percentage points from 2017.
“Thirdly, the broking industry has grown to encompass 22,031 mortgage brokers at the end of March 2024, up 29 per cent since 2017. Most importantly for Australian consumers, growth is correlated with improved competition in the banking sector and reduced mortgage interest rates.”
The report also found that 13 per cent of brokers were active in commercial lending, writing 25 per cent or more of their settlements as commercial loans over FY2023–24, although residential lending remains the bread and butter of most broking businesses.
Hickey stated that commercial and asset finance is an “emerging growth area” and those brokers who specialise in this area “broaden the role of the broker” in the community through the support of small businesses across the country.
“One of the most valuable insights for brokers is to focus on relationships. Relationships with customers fostered through proactive and personalised communications are everything,” Hickey said.
“Brokers in our survey responded that repeat customers (44 per cent) and referrals (28 per cent) were by far and away the key leads for generating broker business.”
Pannek added: “This report provides clear evidence of a thriving industry that delivers real value to consumers and increasingly so for business owners.
“While the sector continues to grow, there is still more to do. We will use this research extensively in the advocacy efforts, to safeguard consumer protections, encourage competition and ensure our members’ businesses continue to thrive.”
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