In 2017, the broking industry united together to defend the role and value of the third-party channel following increasing scrutiny of the sector. At the time, there had been several reviews and questions asked about the role brokers play in the finance market. These included the financial services regulator’s review of broker remuneration; the Productivity Commission’s focus on broking in its review of competition in the Australian financial system; and the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
During this time, the Mortgage and Finance Association of Australia (MFAA) commissioned Deloitte Access Economics to provide an “up-to-date body of information” about the industry “for the purpose of informing policymakers and the broader community about the role mortgage brokers play in the mortgage market and the economic contribution of the mortgage broking industry in Australia”.
The report played a large role in helping the industry quantify and qualify the value that brokers provide not only to borrowers but to the Australian economy as a whole.
But in the intervening six years, much has changed in the broking industry. New regulations have been brought in – including the best interests duty – and more home loan borrowers now use brokers than ever (around 74.6 per cent).
As such, the MFAA sought to understand what value the mortgage and finance broking industry now has and commissioned Deloitte to once again capture the industry’s growth and impact.
In February, the final 52-page Value of Mortgage and Finance Broking 2025 Report was released, which quantified and qualified the value of mortgage and finance brokers in Australia.
Spearheaded by Deloitte partners John O’Mahony and James Hickey, the research drew from a range of publicly available sources, as well feedback from nearly 900 brokers and consultations with industry partners such as aggregators and lenders*.
$4.1bn in value to the economy
According to the report, the economic contribution of the channel is 14 per cent higher than the previous report (2017), when adjusted for inflation.
Mortgage and finance brokers contribute $4.1 billion in gross value added to the Australian economy each year ($3.3 billion in direct value and $800 million in indirect value).
The channel directly employed an estimated 31,899 people across Australia at the end of March 2024 (with another 5,450 people indirectly supported).
Mortgage brokers were found to have arranged an estimated $353 billion of new residential home loans in Australia (for the year to March 2024), according to Deloitte.
Brokers are also delivering value by helping borrowers access lower rates, thereby driving competition, the report found.
For example, brokers achieve an average reduction of 0.35 per cent by successfully repricing their clients and are spending more time providing financial literacy education to borrowers, the 2025 report revealed. Indeed, Deloitte found that brokers now spend 11 per cent of their time educating customers on the loan process and their options.
The educational value that brokers provide – as well as the changing rate cycle and tightening serviceability – may account for the fact that the proportion of first home buyer loans brokers write has increased.
While 23 per cent of broker’s owner-occupied clients were first home buyers in 2018, in the 2025 report, this number increased to 45 per cent of owner- occupier customers.
The authors said that around a quarter of the overall home loan market is for first home buyer loans, demonstrating that brokers are supporting a disproportionately high level of those just embarking on their home loan journey
BID generally seen as a positive
The 2025 report also considered the impact of the best interests duty (BID) on the broker channel (which took effect in January 2021).
It was found to have been generally well-received by the industry and consumers alike.
According to the broker survey for the report, 56 per cent of brokers said the changes had improved trust in the sector – 10 times as many who reported a negative impact on their business.
Brokers also suggested that recommendation quality had improved since regulatory changes were brought in post-royal commission and some had said the financial performance of their business had improved.
Other key findings from the Value of Mortgage and Finance Broking 2025 Report include:
There were 22,031 brokers as of March 2024, up 29 per cent from 2017.
• Nearly 75 per cent of all new Australian residential loans were arranged by brokers in 2024, up 18 percentage points from 2017.
• Eighty-five per cent of surveyed brokers had qualifications equal to or above diploma level.
• Fifty-six per cent of brokers have more than five years of experience.
• Twenty-seven per cent of brokers are women – the same proportion as in 2017.
• A fifth of brokers are located outside of capital cities.
• Revenue per broker (prior to costs) across the industry is equal to $192,000.
• Mortgage brokers are, on average, accredited with 23 different lenders.
• Brokers generally present three loan options to each customer.
• Repeat customers (44 per cent) and referrals (28 per cent) are key leads for generating broker business.
• Thirteen per cent of broker respondents said they were commercially focused, writing 25 per cent or more commercial loans in FY24.
• Commercial and asset finance volumes have grown by 20 per cent or more, according to aggregators.
‘Clear evidence of a thriving industry that delivers real value’: MFAA CEO
Reflecting on the report findings, MFAA CEO Anja Pannek said the research was the result of extensive collaboration with industry and it would form the cornerstone of the MFAA’s advocacy and engagement activities in the years ahead.
“This crucial piece of research paints a complete picture of the evolving mortgage and finance broking industry and its contribution to the Australian economy,” she said.
“It shows that the industry has responded well to a raft of regulatory reforms, in particular the changes arising out of the banking royal commission. The mortgage broker best interests duty (BID), introduced in 2021, has only strengthened the trusted relationships brokers have built with their clients. We see this through the increasing size of the industry and mortgage broker market share.
“More recently, in the midst of a heightened interest rate environment and cost-of-living pressures, brokers have helped borrowers navigate their options – for the better.
“Brokers are helping millions of Australians achieve their goals of owning a home or running a business. It’s clear the value they create for consumers through education and breaking down barriers to access the property market.
“Brokers are also demonstrating value to lenders by working closely with clients, taking the time to get them ‘finance ready’. This can be seen in the way brokers align customers’ needs and objectives with the right lenders, in terms of their offerings, systems and services.
“This report provides clear evidence of a thriving industry that delivers real value to consumers and increasingly so for business owners.
“While the sector continues to grow, there is still more to do. We will use this research extensively in the advocacy efforts, to safeguard consumer protections, encourage competition, and ensure our members’ businesses continue to thrive.”
Noting the growth of the broker channel since the 2018 report, Deloitte partner O’Mahony said: “Most importantly for Australian consumers, growth is correlated with improved competition in the banking sector and reduced mortgage interest rates.”
He said that the increasing number of brokers, higher market share, continuing high demand for housing, and the revolutionising impact of technology on broking were key factors contributing to the higher economic activity.
Deloitte partner Hickey provided the following advice to brokers: “One of the most valuable insights for brokers is to focus on relationships. Relationships with customers fostered through proactive and personalised communications are everything.
“Brokers in our survey responded that repeat customers (44 per cent) and referrals (28 per cent) were by far and away the key leads for generating broker business.”
Hickey also urged brokers to keep up with technology to remain competitive. “Brokers now conduct three times more communication on a digital platform during the broking process since the 2018 report, enabling them to reach a wider customer base,” Hickey said.
Industry welcomes 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.
