Broker share of home lending market hits new high
Monday’s announcement from the Mortgage and Finance Association of Australia (MFAA) that brokers’ mortgage market share surged to a record 77.6% in the June quarter has been roundly applauded by the broking industry.
It also came as little surprise to an industry that has witnessed the increasingly dominant role brokers have played in borrowers’ finances over the past years and decades.
“Brokers continue to win more of the market because they deliver what today’s borrowers want – choice, expertise, and transparency,” said Tim Lemon (pictured, far left), MA Money’s national sales manager.
“The days of walking into one bank and getting a ‘take it or leave it’ rate are long gone,” Lemon continued. “Brokers do the legwork for customers by comparing multiple lenders and tailoring solutions that genuinely fit their needs. They also play an important role in educating customers, from understanding loan structures to using features like offset accounts or consolidating debt, helping them make informed financial decisions.”
For Justine McDonald (pictured, centre right), franchise owner and finance specialist at Nectar Mortgages, the success of the broker channel comes down to trust and time.
“Australians have realised that working with a broker isn’t just about chasing the best rate anymore,” said McDonald. “It’s about having a partner who understands the full financial picture.”
As a broker with a background in multiple disciplines spanning accounting, insurance and real estate, McDonald sees every day how interconnected these aspects of the homeownership journey are.
"Clients want advice that reflects their goals, not a product pushed by one lender,” said McDonald.
McDonald has also seen the value proposition of brokers has evolve. “We’re not only matching loans; we’re providing ongoing education, accountability, and confidence. That human connection, combined with professional expertise, is what continues to shift the market towards brokers.”
The big question now is: Can brokers nab a full 80% of the mortgage market, or has the ceiling already been reached?
The road to 80%
While McDonald sees 80% of the home lending market as an easily achievable target, she warned that to maintain and grow that share, “we need to stay committed to quality compliance, customer outcomes, and professional standards”.
“As more brokers enter the market, the expectation on us to deliver consistent, transparent, and holistic advice will only grow,” McDonald added.
Lemon expects brokers to claim 80% of the home lending market in the near future thanks to the “tangible value and convenience” they provide. There is also a growing awareness of the ‘loyalty tax’, where borrowers miss out on better deals for staying with the same lender for too long, said Lemon.
Blake Buchanan (pictured, far right), general manager of mortgage aggregator SFG, added: “As the data is in arrears, I would not be surprised if we hit 80% in the very near future and I think there is industry consensus on this.
“We strive to continually engage with professional brokerages on the strategies that assist their clients. We are extremely proud of the exceptional work our SFG brokers execute and promote them and this both internally and externally so that all can see the benefits of dealing with brokers.”
However, as the recent comments emerging from ANZ show, there is a growing emphasis on proprietary home lending among many of the major lenders.
Unveiling its ‘ANZ 2030’ strategy on Monday, ANZ revealed plans to significantly expand its mortgage banker network and fast-track the rollout of its ANZ Plus digital front-end.
ANZ chief executive Nuno Matos spoke of “avoiding disintermediation”, which suggests the bank could be preparing to challenge the dominance of the third-party channel.
ANZ is not alone in pursuing proprietary lending growth.
Under chief executive Andrew Irvine, NAB sees proprietary lending and business banking as its two main levers for growth, while broker-originated flows at Australia’s largest lender Commonwealth Bank dipped to just 33% in the second half of its financial year.
According to CBA, broker originated home loans are around 20-30% less profitable than proprietary loans.
But, as Tanya Sale (pictured, centre left), chief executive of mortgage aggregator outsource Financial, said: “One thing will always remain – all they will be offering is that one lender’s products – so look out for a stat that will show 80% (of broker share of the mortgage market) in the not-too-distant future.”
Anthony Waldron (pictured, below), chief executive of Mortgage Choice, also believes the value of brokers will only grow as more Australians seek certainty and personalised advice”.
Waldron added: “This record-breaking result puts the industry in a strong position as the spring property season gets underway. With increased competition in the market, and borrowers needing to transact fast, our Mortgage Choice brokers are perfectly placed to help Australians navigate the market with confidence to secure a property loan that meets their needs.”
Driving the broker channel to new heights
McDonald supports the advancements of the broking channel through her passion for mentoring.
She said: “I’m passionate about supporting new-to-industry brokers, especially women, to build confidence and competence early in their careers.
“Through my mentoring work, I focus on helping brokers understand not just how to write loans, but how to build businesses grounded in values, empathy, and long-term client care.”
McDonald believes success should be measured not just by volume but by diversity, collaboration, and wellbeing. “By creating an environment where brokers feel supported and equipped, we ultimately raise the bar for the entire profession. That’s how we keep earning the trust that drives our growth.”
At MA Money, “our entire business is built around supporting brokers”, said Lemon. “From our products and policies to our systems, teams, and processes – everything we do is designed to make it easier for brokers to deliver for their clients.
“We’re constantly evolving our product range and technology to give brokers access to flexible lending solutions that help more customers achieve their goals.”
“Our industry has always advocated that providing potential borrowers with access to a wide and diverse panel of lenders which enables brokers to give those potential borrowers the ability to compare rates, products and features across the overall landscape is the best path to follow,” added Sale. “It is also clear that the consumer has embraced this – taking back the power!”
Trusted advisers to Australian home buyers
Discussing the latest MFAA data with MPA, Helia, Australia’s largest supplier of lenders mortgage insurance (LMI), said: “We see the power of the broker relationship every day. They make home ownership possible by helping clients navigate an increasingly complex lending environment. They can also help clients understand how to get into a home or invest sooner through options such as LMI.”
While Helia doesn’t speculate on where broker market share is heading next, “(we) do see brokers continuing to play an integral role in responsible lending and client education”, added the group.
“Brokers have been and will continue to be the trusted advisers of the home ownership journey,” Helia chief commercial officer Greg McAweeney (pictured, above) continued. “The stronger and more informed the broker network is around the options available such as LMI, to help their clients get into a home or invest sooner, the stronger the path to home ownership becomes for Australians.”
