Aggregator says renewed borrower confidence and record application volumes will sharpen the contest for client attention next year
Mortgage brokers are heading into 2026 with higher volumes, more confident borrowers and a clearer interest rate outlook, but will need to work harder to stand out as competition intensifies, according to aggregator Connective.
Speaking at Connective’s end-of-year industry webinar, executive director Mark Haron (pictured) said 2025 had marked a turning point for borrower confidence, helped by cash rate cuts and changes to government support for first home buyers.
He told brokers that lower rates had pushed more borrowers to act, with both owner-occupiers and investors returning to the market, while government scheme changes had unlocked additional demand from first-home buyers.
“Borrowers didn’t just browse.” said Haron. “They acted.”
Haron said that shift from inquiry to commitment was carrying through into early 2026, but warned that the broker channel now faced a more crowded and demanding operating environment.
At the webinar, Connective polled brokers on their expectations for the year ahead. The majority, 69%, said they expected to write more business in 2026, while 28% anticipated similar volumes and only 3% forecast a decline.
Application volumes surge
Connective’s own application data points to a sharp rebound. The group reported application volumes up 15.6% year-on-year, with the total value of applications rising 24.4%. The Mercury Nexus platform processed record monthly flows of about $16–17 billion in September and October.
Haron linked the rebound to the Reserve Bank’s rate cuts earlier in 2025 and to the expansion of the First Home Buyer 5% Deposit Scheme, which he said had prompted a surge of activity among first-time purchasers.
Looking ahead, he said ongoing affordability constraints and tight housing supply would continue to shape borrower decisions in 2026, alongside increased movement between cities and regions as medium- and high-density redevelopment progressed.
At the same time, Haron argued that the broker landscape itself had become more competitive.
Broker numbers rise
National broker numbers have risen, and Connective cited a broker density of 10.9 brokers per 10,000 adults. While banks are contesting business through proprietary channels, Haron characterised the more immediate threat for many brokers as coming from peers targeting the same customer base.
Connective pointed to its own data to highlight the growing importance of marketing and client engagement. Brokers using marketing technology such as Connective’s Digital Marketing Hub recorded a median 156% higher annual settlement volume than those who did not use similar tools, indicating the role of consistent communication and visibility in retaining and winning clients.
Haron also said technology and artificial intelligence would widen performance gaps within the broker community. Connective delivered a series of upgrades to Mercury Nexus in 2025, including open banking enhancements, an improved borrowing capacity calculator, additional Equifax integration, new reporting tools for fixed-rate and interest-only expiries, and a redesigned client portal.
“The biggest technological and commercial shifts rolling into 2026 won’t reduce the importance of brokers. They will sharpen it. Just like AI won’t replace brokers, but brokers who embrace AI will outperform those who don’t.” Haron said.
He also urged brokers to keep three priorities in focus in the coming year.
First, staying visible and in contact with clients through regular, relevant communication to protect existing books and reinforce retention.
Second, differentiating through responsiveness, with speed, clarity and proactive follow-up becoming more critical as competition increases.
Third, using available tools – including automation, data insights and AI-enabled workflows – to respond faster and anticipate client needs more accurately.
“2025 was the year confidence came back,” Haron said. “The brokers who win 2026 will be the ones who stay visible, communicate consistently and move faster than competitors.”
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