Mortgage Brokers in Australia - Industry Market Research Report

Mortgage Brokers in Australia

Mortgage brokers have benefited from the relatively resilient Australian housing market in recent years. Despite the effects of the COVID-19 pandemic, factors like the previously record low-interest rates, government stimulus and surging residential housing prices have improved loan values and loan volumes for brokers. Stronger commissions for brokers have grown profit margins and raised wages in the industry. Notably, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industries levied significant scrutiny on the conduct of mortgage brokers. As a result of the Royal Commission, numerous lenders changed their remuneration models for brokers, and the government even introduced legislation intended to reform core principles of the industry. These reforms, including a statutory duty to act in the best interest of the borrower, have had varying effects on brokers. Overall, the mortgage brokers industry is expected to grow at an annualised 3.4% over the five years through 2023-24, to total $4.2 billion.

Mortgage brokers in Australia generally act on behalf of lenders, primarily helping borrowers arrange mortgage finance (for both residential and investment real estate purposes) and refinance existing mortgages. Brokers do not usually charge mortgagees any fee for their services, and instead receive commissions on loans arranged for lenders.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.