Mortgage broking is one of Australia’s most lucrative industries – at a national level, the mortgage broking industry is estimated at a market value of $6.2 billion in 2026, with a compound annual growth rate of 5.8% between 2020 and 2025 (IBISWorld).
Amidst rapidly rising property prices, RBA interest rate hikes, and new schemes to assist first-time buyers, there is a real demand for mortgage broking services among first-time homeowners and investors.
Let’s take a look at how the mortgage broking industry is expected to change alongside current trends.
Australia’s mortgage broking industry in 2026
Mortgage brokers play a big role in the property purchasing journey for homeowners and investors.
Data from the Mortgage and Finance Association of Australia (MFAA) showed that mortgage brokers facilitated 76.7% of all new residential home loans in the December 2025 quarter – the highest rate of usage ever recorded since 2013. Mortgage brokers wrote $142.2 billion in new home loans in the December 2025 quarter alone.
This is a dramatic increase to data from 2017 where brokers only facilitated 56% of home loans, signalling a growing preference among home buyers for mortgage broking services. As the MFAA notes, today’s lending environment means borrowers are confronted with a wide spread of lenders and products, and the decision is no longer simply about price but about which loan genuinely fits their circumstances; something that a mortgage broker can help determine.
Current trends affecting the mortgage broking industry
Housing prices
The national average (mean) dwelling price in Australia surpassed $1 million for the first time in history during the March quarter of 2025 – as of June 2026, it is $1,111,100 (ABS).
Surges in property prices have led to increased demand for mortgage broking services in a bid to minimise borrowing costs as much as possible. Higher purchase prices also mean larger loans, tighter serviceability margins, and a greater payoff from securing even a marginally better rate – all of which push buyers toward professional advice.
RBA interest rate hikes
Having cut rates three times in 2025, the RBA reversed course entirely in 2026, delivering three successive hikes in February, March, and May, which pushed the cash rate back to 4.35%. As a result, every state and territory recorded negative year-on-year mortgage demand in May 2026.
Westpac forecasts a further increase in late 2026, while the other three major banks expect rate cuts only in mid 2027. This uncertainty makes the timing and structure of a loan more consequential than ever, and brokers are well placed to help borrowers weigh fixed versus variable options and stress-test repayments against further movements.
New home buying schemes
There are a range of home buying schemes in 2026 that buyers can take advantage of – mortgage brokers are expected to provide advice on eligibility and considerations for buyers.
- First Home Owner Grants
- 5% Deposit Scheme (2% for single parents and guardians)
- Help to Buy (shared equity scheme) – differs for each state for property price caps and timelines
Eligibility criteria, price caps, and timelines vary by state and change frequently for these schemes. As navigating these schemes is genuinely complex, brokers add value by helping buyers identify which combination they qualify for.
APRA lending limits
From February 2026, APRA (Australian Prudential Regulation Authority) has enforced new debt-to-income (DTI) limits on lenders.
These limits restrict the approval of loans for borrowers who have total debt exceeding six times their income.
With these new limits, borrowers and lenders are even more dependent on mortgage brokers to match eligibility and borrowing needs.
Property investors, particularly, are more likely to turn to mortgage brokers for help in navigating these restrictions to find other borrowing alternatives, such as lenders with more flexible servicing policies or loan structures that sit within the new thresholds.
The future of mortgage broking
The role that mortgage brokers have in the property industry continues to remain relevant – with demand for their expertise possibly increasing alongside the complexity of property transactions and lending.
This demand is likely to be offset by the increasing number of mortgage brokers across Australia – as of September 2024, there were 22,265 mortgage brokers across Australia, the highest on record.
Mortgage brokers striving for greater success in their career need to figure out how to increase the value they deliver for clients and lenders. The brokers who thrive will be those who differentiate themselves rather than competing on rate alone.
Adoption of AI tools
The increasing adoption of AI-driven loan processing tools means that more borrowers will have access to the advice they need for smaller loans. For something as complex as a home loan, the expertise of a mortgage broker will still be required.
New and seasoned mortgage brokers need to embrace AI tools to add value to the service offered to clients. While AI helps streamline processes and reduce administrative workloads, freeing brokers to focus on client relationships, it also creates new risks, including a rise in increasingly sophisticated fraud. Brokers who use these tools to cut admin time while strengthening their oversight and personal advice will be best positioned.
Focus on borrower education
Buying a property will always be significant enough to warrant a higher level of research among buyers regarding finance. For brokers, focusing on educating borrowers will be a key point of difference in the industry that provides value – especially as the government and regulators change how different people purchase property through schemes and grants. A broker who can clearly explain DTI limits, scheme eligibility, and rate risk turns a transaction into a lasting relationship, which matters given how much broker business already comes from repeat clients and referrals.
Upskilling and professional development
Changing rules in real estate and financial legislation require mortgage brokers to continually stay up to date with compliance and best practices. Mortgage brokers currently have to complete at least 20 hours of Continuing Professional Development (CPD) as per the ASIC’s regulations.
Industry associations like the MFAA and FBAA have higher CPD requirements for membership renewal at 30 and 25 hours respectively. Beyond meeting minimums, ongoing professional development is how brokers keep pace with shifting lending rules and continue to justify their growing share of the market.
