Survey shows improved conditions, but job security concerns grow among broker clients
Australian borrowers are finding it easier to refinance their home loans, with many turning to mortgage brokers for assistance as interest rates and inflation show signs of easing. However, new data indicates that concerns about job security and the availability of housing are increasing among clients.
The latest national survey by the Mortgage & Finance Association of Australia (MFAA) highlights these trends ahead of the Reserve Bank of Australia’s upcoming board meeting. The industry body’s August 2025 Member Sentiment Survey, which gathered responses from more than 300 mortgage brokers, offers insights into borrowers’ financial outlook and the strategies brokers are using to support them.
According to the survey, 34% of broker clients now feel positive about their financial prospects, marking a 1.5% rise since February 2025. Meanwhile, 47% remain neutral, a decrease of 3%; while 19% report a negative outlook, up by 1.5%. The main factors behind positive sentiment remain unchanged: interest rates, property equity, and job security.
For the first time, the survey shows a significant increase in borrowers worried about employment, with those expressing job security concerns rising from 4.8% in February to 18.3% in August. Job security is now the second most common reason for a negative outlook, following cost of living, with housing supply ranked third.
MFAA chief executive Anja Pannek (pictured top) said uncertainty in the global economy and the impact of artificial intelligence may be contributing to anxiety about job stability, while ongoing shortages in housing supply continue to affect borrowers.
“Brokers are reporting far fewer clients are unable to refinance due to serviceability requirements than in any of our previous surveys,” Pannek said. “The situation has improved over the past two years. Even since February 2025, the number of clients brokers have helped refinance has doubled.”
For borrowers with a neutral outlook, the cost of living has become the primary concern, overtaking housing supply and interest rates, which now rank second and third, respectively.
The survey also indicates that more borrowers are able to refinance their loans, suggesting that the serviceability constraints which previously limited options have eased. “Improved economic conditions mean refinancing to a more affordable home loan could be an achievable option today. The survey shows that 92% of brokers have clients who are using a broker for the first time to refinance,” Pannek said.
Over the past six months, brokers have observed a general improvement in borrower sentiment. “There are several factors that are contributing to this,” the MFAA CEO said. “Interest rates fell in February, May and August, inflation has eased, while modest wage growth, the stage three tax cuts and changes to HECS debt have all had an impact.”
Despite these improvements, some clients continue to face challenges with mortgage repayments, though the number has declined as conditions have become more favourable.
“While we recognise that most borrowers have a more optimistic view of their financial situation, we also acknowledge that some mortgage holders are struggling, due to cost-of-living pressures and job uncertainty,” Pannek said. “They are looking to mortgage brokers for support and to help them understand their options. The important role brokers play in educating clients, building financial literacy, providing guidance on budgeting strategies and hardship options is a highlight of the survey.”
In the last six months, 99% of brokers have secured loan discounts for clients, 99% have assisted with refinancing to new lenders, 90% have provided budgeting advice, and 80% have helped clients understand hardship options.
First-home buyers remain a key group for brokers, with 98% of brokers reporting clients in this category. The Federal Government’s 5% Deposit Scheme, set to expand on Oct. 1, is attracting interest, although securing a property remains a significant challenge for many.
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