•According to the latest data for June 2026, 81.6% of Australian housing loans are arranged by mortgage brokers. This rate, which was 50.1% in June 2016, is increasing rapidly, reflecting a profound change in the country’s housing loan usage habits. 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, which represents 24,000 mortgage brokers in Australia, points out that the country is now one of only three countries where mortgage brokers provide more than 80% of loans. The United Kingdom and the Netherlands also join this list.
One of the participants in a focus group discussion in Parramatta said, “Housing loans are complex, so I use a broker”, summarizing the motivation of consumers.
It is believed that banks are not reliable; some find it safer to borrow from large banks, while others find 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 around 35% of regional branches. Another possible reason is the fluctuation in interest rates over the past decade. Interest rates have fallen to historically low levels during the COVID period, then risen and fallen again in the past year. The Central Bank has raised interest rates four times this year and another increase is expected at the beginning of November. The rules in force since mid-2021 require licensed mortgage brokers to do more than just find a suitable loan; they now have to meet a higher standard, acting in the “best interests” of their clients.
The best interests obligation involves offering customers several options and ensuring that a customer understands what each of these options means for them. In a speech made in July, Alan Kirkland, a commissioner at the Australian Securities and Investments Commission (ASIC), highlighted the responsibility of intermediaries to educate their clients — including explaining the reasons they give for recommending certain options. An intermediary typically offers a borrower three credit options. However, they do not compare all the options or all the providers on behalf of the intermediary. Instead, the credit options they offer come from a platform called an aggregator. Aggregators are credit wholesalers and provide intermediaries with a catalogue of loans in exchange for a percentage of the commission that the provider pays the intermediary after the loan is approved. The 2023–24 industry survey found that intermediaries are accredited with an average of 23 providers across the country, from more than 100 home loan providers. Intermediaries receive a fixed fee of a percentage of the loan value when the loan is approved, and then a recurring fee of approximately 0.15% of the remaining value of the note — approximately 0.7% of the borrowed amount upfront; this is a decreasing but potentially very long payment stream. So intermediaries earn more for larger, longer-term loans.
Most of their work comes from repeat customers (44%) and referrals (28%), so maintaining customer satisfaction is critical; therefore, it is not mandatory for brokers to refer borrowers to the products that pay them the highest commission. The decline in home loan demand has made competition between providers 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 incomes or an unusual credit history.
