•A record 81.6% of Australian housing loans were arranged by mortgage brokers as of the latest June 2026 data. This rate was 50.1% in June 2016.
A report prepared by a commission for the sector and published in late September shows that mortgage brokers arranged 838,815 housing loans in 2025, an increase of 122,800 loans or 17.2% compared to the previous year.
The national organization representing 24,000 mortgage brokers in Australia emphasizes that the country is now one of only three countries where mortgage brokers provide more than 80% of loans. The list also includes the United Kingdom and the Netherlands.
One of the participants in a focus group meeting in Parramatta, “Housing loans are complex, so I use a broker,” summed up the motivation of consumers.
It is believed that banks are not reliable; some find it safer to borrow from large banks, while others consider them inflexible, unhelpful and expensive. The study found that those who use intermediaries are more confident that they have chosen the best loan. However, it was also found that those who use intermediaries have less understanding of home loans compared to those who deal directly with the credit provider. Among the broader reasons for the change are the closure of more than 2,100 bank branches in Australia between 2017 and 2023. These closures include almost 40% of metropolitan branches and about 35% of regional branches. Another possible reason is the fluctuation in interest rates over the past decade. Interest rates have fallen to extraordinarily low levels during the COVID period, then risen and fallen again in the last year. The Central Bank has made four interest rate increases this year and another increase is expected at the beginning of November. The rules in place since mid-2021 require licensed mortgage brokers to do more than just find a suitable loan; they now have to meet a higher standard of acting in their clients’ “best interests”.
The best interests obligation involves offering customers several options and ensuring that a customer understands what these options mean for them. In a speech made in July, Alan Kirkland, Commissioner at the Australian Securities and Investments Commission (ASIC), highlighted the responsibility of intermediaries to educate their customers – including explaining the reasons they recommend certain options. An intermediary typically offers a borrower three credit options. However, they do not compare all the options or all the providers. Instead, the credit options they offer come from a platform called an aggregator. Aggregators are credit wholesalers and provide a catalogue of loans to intermediaries in exchange for a percentage of the commission that the provider pays the intermediary after the loan is finalised. The 2023-24 industry survey found that intermediaries are accredited with an average of 23 providers across 100+ home loan providers nationally. The 2023-24 industry survey found that intermediaries are accredited with an average of 23 providers across 100+ home loan providers nationally. Intermediaries receive a percentage of the loan value at the time of loan finalisation, and then a continuous fee – approximately 0.7% of the borrowed amount upfront; followed by a continuous “trail commission” of approximately 0.15% of the remaining value of the note. For a 25-year loan, this means a decreasing but potentially very long payment stream. So intermediaries receive more fees for larger, longer-term loans.
Most of their work comes from repeat customers (44%) and referrals (28%), so maintaining customer satisfaction is critical; therefore, brokers are not obliged to refer borrowers to the products that pay them the highest commission. Due to the decline in home loan demand, competition between providers is currently particularly fierce. Even the largest banks have become more dependent on brokers to attract new customers. Sometimes, brokers can help accept applications from people with less predictable income or an unusual credit history. Before taking out a home loan without choosing, it’s a good idea to get a free and independent advice on what to ask. Two good places to start are the federal government’s Moneysmart website and the consumer group Choice.
