Industry welcomes research showcasing value of brokers

The 52-page Value of Mortgage and Finance Broking 2025 report revealed that brokers not only provide value by helping borrowers access better rates on their loans, improve lending competition, and bolster financial literacy in Australia but also contribute more than $4 billion to the economy.

Aggregation leaders welcome proof of value

Several aggregator leaders – including the CEOs of Mortgage Choice, Australian Finance Group (AFG) and the executive chairman of Loan Market – have welcomed the new resource and its findings, highlighting that it provides evidence of what the industry has already known to be the case; that brokers drive a competitive lending market and provide an absolutely vital service to Australian consumers.

AFG CEO David Bailey noted that the last report (from 2018) had been “a very important document to advise, inform and educate the government and the community on the role of mortgage brokers”.

He, therefore, welcomed the new, “insightful report”, adding: “Our industry is a highly connected community of professionals, small businesses and their customers who believe in choice, fairness, and prosperity for all.

“The service, flexibility and diversification of product suites that brokers bring to clients results in the channel being highly productive, and an 18 per cent increase since 2018 to take broker market share to 75 per cent, is clear evidence of the value and effectiveness of the channel. We expect this number will continue to grow.”

Sam White, the executive chairman of Loan Market Group, echoed this sentiment, stating: “We’re delivering real competition, driving better outcomes for borrowers, and keeping the finance industry fair. This is a massive win for every broker in Australia and proof of the trust borrowers place in us.”

According to White, one of the most “powerful” takeaways from this report is that brokers help drive down net interest margins over time.

“Borrowers aren’t just getting better deals through brokers – they’re benefiting from the competition we bring to the entire market. That’s why we must continue advocating for broker choice and independence, ensuring no lender or regulator tilts the playing field,” he said.

He also noted that the fact more than half of brokers believed the best interests duty had strengthened trust in our industry was “a game changer”.

“The banks don’t have this obligation, but brokers do, and that’s why we’re the best choice for borrowers,” he said.

White added: “This report is a massive endorsement of the broking industry, but it’s also a call to action. Now is the time to keep educating borrowers, strengthen our position as trusted finance professionals, and expand into new lending areas to future-proof our businesses.

“Brokers are out there every day securing better deals, driving competition, and keeping the banks in check. This report proves it – now, let’s build on that momentum and take our industry even further.”

Mortgage Choice CEO Anthony Waldron also told The Adviser that the report “highlights the undeniably positive impact the mortgage broking industry has on the Australian economy”, noting that the industry has “transformed” since the last report was published in 2018.

“Best interest duty has strengthened the industry, raised standards and increased consumer trust in the sector,” he said.

“As the lending landscape has become more complex, consumers increasingly rely on the expertise and guidance of brokers to navigate the complexity. It’s unsurprising that with first home buyers representing 45 per cent of brokers’ owner-occupied customers, we’re seeing an increase in the time brokers spend educating consumers to help them overcome barriers to property ownership,” Waldron said.

“The report is also a timely reminder of the importance of brokers partnering with an aggregator that provides the infrastructure to support broking businesses of all sizes. This includes access to a panel of lenders, technology, compliance and marketing support that enable brokers to streamline their process, be more productive, and meaningfully engage with customers.”

CAFBA applauds commercial broking growth

The Value of Mortgage and Finance Broking 2025 Report report also highlights that while the commercial and asset side of finance broking is not as mature as residential, it is strongly growing, with many residential finance brokers looking to diversify into assisting finance to business.

Reflecting on the finding that more brokers are expanding into commercial and asset finance (with 13 per cent now specialising in commercial lending), the CEO of the Commercial and Asset Finance Brokers Association of Australia (CAFBA), David Bushby, said: ‘Understanding our industry and having access to the qualitative and quantitative data that backs up that understanding is vital.

“Finance broking is a dynamic and evolving industry. As such, having access to a deep analysis of the state of the industry that this report provides is an invaluable tool in properly understanding threats and opportunities.

“And just as importantly, being able to have accurate data and statistics when dealing with politicians and regulators can help ensure regulatory decisions are made on a reasonable and informed basis.”

CAFBA’s advocacy chair, Quantum Finance broker David Gandolfo OAM, added: “I think the report is excellent, and I congratulate the MFAA on their body of work. Whilst primarily resi-focused, its relevance to the commercial and asset finance sector cannot be understated.

“This report provides insights that we have known anecdotally but haven’t been able to articulate with quantitative or qualitative analysis. Now we can, and that’s important when highlighting the importance of this sector and its economic impact to regulators and lawmakers.”

Brokers also welcomed the report, with Phil Rice from EZ Finance taking to The Adviser to state: “Real statistics and acknowledgement of mortgage and asset brokers traditionally has been under-acknowledged and underestimated, so this report is a breath of fresh air!

“The broker industry is growing and evolving into a true beacon of light for consumers and business owners, while continually improving on BID and customer outcomes.”

[Related: What is the value of the mortgage and finance broking industry?]