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The role of the mortgage broker is evolving, enabled by technological adoption.

That is a key conclusion highlighted in a 56-page report published in February 2025 by the Mortgage and Finance Association of Australia (MFAA) titled: “The Value of Mortgage and Finance Broking 2025.”

MFAA is the peak body for the mortgage and finance broking industry in Australia.

With the help of Deloitte Access Economics, and the support of industry partners, MFAA has released groundbreaking research detailing the substantial contribution that finance brokers make to the Australian economy. For example, in delivering better outcomes for borrowers and driving competition in the lending market.

It’s a detailed overview of the broking industry - including mortgage, commercial and asset broking - and builds on the insights of the 2018 “Value of Mortgage Broking” report.

Here are my key take-aways.

Australia's mortgage broking industry is an essential part of our lending ecosystem

The report opens with a snapshot of the broking industry:

There were 22,031 brokers operating in the market at the end of March 2024.
75% of all new residential loans in Australia are arranged by mortgage brokers.
Repeat customers are the best sources of lead generation.

Then it summarises the key benefits delivered by the broking industry to the Australian economy:

Broking generated $4.1 billion in economic activity in FY23.
The industry is a big employer, supporting 37,349 direct and indirect jobs.
Brokers saved clients an average 0.35% on interest rates when repricing and the growth in the industry is directly correlated with pricing reductions for borrowers.

Brokers are simplifying a complex marketplace and improving consumer choice

Brokers play a crucial role in enhancing market competition and breadth of choice for the benefit of consumers, who are increasingly seeking out more personalised financial solutions.

In a nutshell, this is because brokers take the time to understand the borrower's needs and then offer a wider range of loan products than the borrower would typically discover themselves.

This includes loans from large and small lenders, both bank and non-bank.

A key benefit delivered by brokers is demystifying industry jargon and credit policy requirements.

In fact, brokers spend 11% of their time educating consumers about mortgage applications and one third of time is committed before a guaranteed fee.

On average, brokers present three options to each customer, exceeding regulatory requirements.

Borrower needs vary depending on individual circumstances, for example, first home buyers versus investors, and apartments in cities versus houses with land in regional and rural areas.

The crucial importance of strong customer retention

Consumers who use mortgage brokers value the personal relationship and support offered throughout the life of the loan.

Most brokers receive the bulk of their business through repeat customers and referrals.

The survey found that 72% of a broker’s business comes from existing customers or referrals from an existing customer.

Repeat customers (45%) and referrals from customers (27%) are the key sources of lead generation.

For retention, it is important that brokers are pro-actively assessing whether consumers are receiving the best rates.

Survey respondents reported a 0.35% average reduction in interest rates achieved for customers who successfully repriced.

Technology adoption delivers broker efficiency and improved consumer outcomes

The word “technology” appears 31 times in the report and it will come as no surprise that mortgage brokers have experienced rapid change in technological adoption in recent years, spurred by a combination of regulatory reform and the pandemic.

Digital signing services are most common, followed by Customer Relationship Management (CRM) platforms and cybersecurity tools.

Technology has assisted brokers to communicate with their customers more efficiently. Brokers now conduct three times more communication on a digital platform than face to face during the broking process, enabling them to reach a wider customer base.

Brokers are also using technology to streamline their operational tasks, resulting in more time being spent with their clients on upfront education and ongoing proactive assessment of best mortgage terms for their clients.

By reducing the time needed for administrative tasks, brokers can spend more time providing personalised support to improve the customer experience.

Technological innovation is transforming the role of brokers, making them more efficient, insightful, and versatile in their services.

The broking industry will likely continue to embrace technology as a superior way to create a more efficient and customer-centric mortgage broking experience.

Brokers specifically indicated that opportunities for more digital information sharing to allow for consistency in data access between brokers and lenders will assist with offering faster, more accurate loan solutions to customers.

Brokers are planning to implement more advanced technologies in the future, with Open Banking/Consumer Data Right being the most planned for technology (34% of brokers).

Music to our ears at Stryd! If you haven’t seen us in action, book a demo of our flagship Stryd Broker platform here or email sales@stryd.au.

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