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McDonald’s MonopolyThe mortgage broking sector in Australia is experiencing unprecedented growth, as revealed by the latest report from the Mortgage & Finance Association of Australia (MFAA) Industry Intelligence Service (IIS). The report, covering data up to September 2024, highlights record-breaking loan volumes, broker numbers, and market share. This expansion is a testament to the increasing reliance of Australians on brokers for expert financial advice, especially in the realm of commercial lending.
According to MFAA CEO Anja Pannek, borrowers are increasingly recognizing brokers’ ability to tailor financial solutions to their needs, including in the commercial loan sector. The broker channel’s dominance in residential mortgages is evident, with brokers settling 74.6% of new home loans during the April-September 2024 period, a figure that has since risen to 76.8% as of March 2025.
During the six-month period, brokers achieved a record $203.8 billion in residential home loan settlements, marking a substantial year-on-year increase. This growth trend is further exemplified by the total settlements of $378.87 billion over the preceding 12 months, showcasing an 8.06% annual increase.
Brokers are also diversifying into commercial lending, with a notable 24.21% year-on-year increase in brokers writing commercial loans. This shift is crucial in enhancing competition and providing small and medium-sized enterprises (SMEs) with a broader spectrum of financial options. The value of commercial loans settled reached a record high of $22.68 billion, with significant participation from brokers across all states.
Female representation among mortgage brokers is on the rise, albeit slightly, with the number of female brokers increasing by 5.61% year-on-year. This growth, though encouraging, underscores the need for further efforts to bolster gender diversity in the industry. The MFAA’s She Means Business pilot program, developed in collaboration with the Council of Small Business Organisations Australia, aims to address this issue.
While home loan application volumes have seen an uptick, the conversion rate has experienced a marginal decline over consecutive periods. Major banks have witnessed a decrease in their share of broker-originated lending, dropping below 40% in the July-September 2024 quarter.
With data collected over eight years in partnership with Comparator by Cotality, MFAA is evaluating the format of its IIS report to better align with industry requirements. This ongoing review aims to enhance the report’s utility for stakeholders and ensure that it continues to provide valuable insights into the evolving landscape of the mortgage broking sector.
The dynamic growth and evolving trends in the Australian mortgage broking industry underscore the sector’s resilience and adaptability in meeting the changing needs of borrowers and the broader financial landscape. As brokers continue to play a pivotal role in facilitating access to finance and driving competition, the industry is poised for further expansion and innovation in the years ahead.
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