The broker boom: What’s driving record mortgage broker share in Australia
The broker boom: What’s driving record mortgage broker share in Australia
I saw an eye-catching statistic in the media this week, as quoted by the MFAA (Mortgage and Finance Association of Australia). The statistic? That 77% of Australian home loans are now distributed through mortgage brokers. This is particularly startling, given that broker share has risen from less than 60% as recently as mid-2021.
The question is, what is driving this share up?
In my view, and confirmed by our data, three key things are driving an increase in broker share of life’s most pivotal stages.
1. Uncertainty fuels the need for trusted advice
RFI Global’s Atlas Consumer Sentiment Index has languished below 100 points – the point below which pessimism outweighs optimism – for more than 3 years now. A knock-on effect of inflation impacting household budgets, and recently, high interest rates are driving up the cost of debt.
In almost every month over the last three years, consumers have faced significant uncertainty. Will interest rates rise or fall? Will various wars around the world impact global supply chains and energy prices? Will Trump’s tariffs result in trade wars?
The fact is that in an environment of uncertainty, consumers will turn to trusted advisors who can help them navigate the best route. Particularly when it comes to the largest financial decision of your life. This is where mortgage brokers come in.
2. Service quality drives loyalty and repeat business
The second reason is that brokers are doing a very good job of servicing their customers. In an increasingly digital age, it is no small thing that consumers continue to prefer an in-person experience. In fact, the number of borrowers likely to complete a mortgage application entirely online – 41% – hasn’t changed since 2021.
In contrast, the proportion of borrowers who say that a broker would be their most preferred application channel rose from 39% in March 2022 to 52% in 2025.
Preference is one thing, but the litmus test of service is repeat custom. So, it’s interesting to note that the proportion of broker customers that say they would prefer to return to a broker is 88% and rising, much higher than those that would return to a branch (52%) or a mobile lender (23%).
3. Younger borrowers are reshaping the mortgage market
The third reason is that the rise of broker share is down to demographics – younger borrowers are significantly more likely to turn to a broker than their older counterparts. When it comes to staying informed about interest rate changes, 30% of under-35s turn to brokers compared to just 6% of over-65s. And this contrast continues with the application process, with 61% of under-35 borrowers saying that a broker would be their preferred application channel, versus 39% of those over 65.
You could argue that younger borrowers turn to brokers because they’re less likely to be experienced in mortgage applications. And to a degree, you’d be correct. But my counter would be that those surveyed already have a mortgage and are being asked about their future preference, and what is more, based on the previous chart, a large proportion of these people will go back to a broker after a prior experience.
Will broker share keep rising? The outlook ahead
So, broker share is on the up. A follow-up question then… will it continue to rise? Again, I believe the answer is yes.
Firstly, because we’re entering into an environment of falling interest rates, which will naturally result in consumers reconsidering their positions and trying to understand what their best next step is. Should they fix their rate? Should they refinance their debt? Whatever the answer, they will ask the questions. And who does the data show that they’re increasingly likely to ask? Brokers.
Secondly, there are the demographics. Those most likely to refinance are younger, and this, combined with Government guarantees encouraging activity among first homebuyers, will mean a continued shift towards activity among younger consumers. Who are these younger consumers most likely to turn to? Brokers.
Lastly, in a world of uncertainty, humans turn to humans for advice. As banks close branches and make human accessibility harder, then who will future borrowers turn to? Brokers.
Get in touch for more insights from our latest Mortgage Council study, with insights from over 2,000 Australian mortgage holders.
Frequently Asked Questions
Q: Why are more Australians using mortgage brokers?
A: Mortgage brokers now handle 77% of Australian home loans. RFI Global’s data shows this rise is driven by economic uncertainty, strong broker service and younger borrowers’ preferences for broker-led advice.
Q: Which age groups are most likely to use mortgage brokers?
A: In Australia, younger borrowers are leading the shift. 61% of under-35s prefer applying for a mortgage through a broker, compared to 39% of over-65s. Younger consumers are also more likely to seek broker advice on interest rate changes.
Q: Will mortgage broker market share continue to grow?
A: The data suggests yes for Australia. With falling interest rates, refinancing activity, and demographic shifts towards younger borrowers, broker share is expected to rise further in the coming years.
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