What 8 out of 10 borrowers know about mortgage brokers that you might not

Why 82% of borrowers trust mortgage brokers over banks, the fixed-rate rollover affecting 60% of mortgage holders, and your refinancing options in 2025

The numbers tell a compelling story about Australia’s mortgage landscape. According to the Consumer Access to Mortgages 2025 report, produced in partnership with the Finance Brokers Association of Australia (FBAA), 82% of borrowers express high trust in their mortgage broker, while many Australians still don’t fully understand what these professionals actually do or how they can help. Meanwhile, banks receive trust ratings of just 20% from their mortgage customers.

This knowledge gap might be more significant than you think. In today’s complex lending environment, with fixed-rate rollovers affecting nearly 60% of borrowers in the next 12 months and interest rates creating both challenges and opportunities, understanding your mortgage options has never been more important.

FBAA Managing Director Peter White AM said it was an evolving landscape for brokers amid economic changes. “While brokers remain the preferred channel for many, shifting economic conditions and digital disruption are reshaping how borrowers think about their next home loan,” Mr White said.

What those 8 out of 10 borrowers understand about trust

The trust statistics surrounding mortgage brokers reveal something remarkable about the Australian lending landscape. The research reveals a significant contrast between financial strain and consumer confidence in brokers, with 82% of borrowers expressing trust in mortgage brokers compared to much lower confidence in bank staff.

Not only do 82% of borrowers express confidence in their broker, but 39% say they “completely trust” their mortgage professional.

Record market performance reflects genuine value

This trust isn’t misplaced. Mortgage brokers now settle a record 76.8% of all new residential home loans, representing $99.37 billion in lending during the March 2025 quarter alone. This figure marks a 21.97% increase from the previous year and represents the highest market share ever recorded for the broking industry.

Legal protection through best interests duty

What drives this confidence? The answer lies in a combination of regulatory protection and genuine service delivery. Since 2021, mortgage brokers have operated under the Best Interests Duty, a legal requirement that means they must prioritise your financial wellbeing above all else.

This isn’t just a nice-to-have principle – it’s enforceable law that ensures brokers act in your best interests when recommending loan products.

What informed borrowers know about broker services

Those 8 out of 10 borrowers understand that brokers offer something banks typically can’t:

• Access to multiple lenders rather than one bank’s limited options
• Objective product comparison across dozens of lending institutions
• Ongoing support that extends well beyond settlement day
• No direct cost to borrowers (lenders pay broker commissions)

The mortgage landscape knowledge that matters right now

Australia’s mortgage market is experiencing significant change, and understanding these shifts can help you make better decisions about your home loan. The Consumer Access to Mortgages 2025 report reveals the most immediate challenge facing borrowers is the fixed-rate rollover situation affecting the majority of mortgage holders.

The fixed-rate rollover reality

Research shows that nearly 60% of borrowers will see their fixed-rate loans revert to variable rates within the next 12 months. For many, this means transitioning from the low rates they secured during the pandemic to significantly higher variable rates.

The average increase can be substantial, with some borrowers facing repayment jumps of several hundred dollars per month.

New opportunities emerging from rate cuts

However, recent Reserve Bank of Australia rate cuts in February and May 2025 have created new opportunities. These cuts, with more potentially on the horizon, are improving borrowing power and creating competitive pressure among lenders. The impending fixed-rate expiries present both challenges and opportunities in the property market.

Understanding current market pressures

Current market conditions reveal both challenges and opportunities:

• 42% of consumers report their financial situation has deteriorated over the past year
• 34% of mortgage holders are experiencing mortgage stress (repayments exceeding 30% of income)
• 16% of borrowers have already refinanced their loans
• Nearly half are actively thinking about their refinancing options

The refinancing surge tells a story

The data shows refinancing activity reached 554,820 loans in the year to March 2025, with internal refinancing up 33% year-on-year. This surge indicates that knowledgeable borrowers understand that doing nothing in this environment rarely pays.

What first-home buyers have discovered

The first-home buyer market provides insights into how Australians are adapting to current lending conditions. The FBAA report shows that despite affordability challenges, 43% of potential first-home buyers are planning to use a mortgage broker when entering the market, recognising the value of professional guidance during their first property purchase.

The deposit challenge facing new buyers

This preference makes sense when you understand the complexity first-home buyers face:

• Average deposit needed: $159,000 (increased 50% since 2020)
• Time to save 20% deposit: approximately 10 years
• In expensive markets like Sydney: up to 15.7 years to save

Government support schemes making a difference

Smart first-home buyers are discovering various support mechanisms available to them. An impressive 78% of first-time buyers have applied for or plan to apply for government support schemes, including:

• First Home Guarantee: Allows purchases with deposits as low as 5% without Lenders Mortgage Insurance
• State-based grants: Queensland offers up to $30,000 for eligible first-home buyers
• Stamp duty concessions: Can save thousands of dollars across various states

The emerging trend of rentvesting

An emerging trend among first-home buyers is “rentvesting” – purchasing an investment property as their first step onto the property ladder. This strategy has grown by 12% annually among first-home buyer investors, more than double the 5.5% growth seen in traditional owner-occupier first-home buyer loans.

The knowledge gap that might be costing you

Perhaps the most significant finding from the Consumer Access to Mortgages 2025 report is the substantial knowledge gap that exists around mortgage broking services. A remarkable 40% of consumers don’t fully understand what mortgage brokers actually do, while nearly half incorrectly believe they’ll be charged fees for broker services.

The financial impact of this knowledge gap

This lack of understanding can be costly. The research highlights that this presents an educational opportunity for professionals to provide value by clarifying the role of brokers and helping consumers understand their options.

Think about these proven benefits that many borrowers miss:

• 11% of broker time invested in upfront client education
• Average of three product options presented to each consumer
• Average 0.35% interest rate reduction achieved through refinancing
• Tens of thousands in potential savings over a typical mortgage term

The broader financial literacy challenge

The knowledge gap extends beyond just understanding broker services. Research reveals that 89% of borrowers still believe homeownership is part of the Australian dream, and 71% aspire to own a home in their lifetime.

However, many are trying to save without understanding how much is enough, or what options are available to help them achieve their goals sooner.

Financial literacy challenges are widespread, with studies showing 36% of Australian adults lack basic financial knowledge. This gap becomes particularly problematic when making major financial decisions like choosing a mortgage, where the wrong choice can cost thousands of dollars annually.

What educated borrowers understand

Educated borrowers understand that brokers serve as more than just loan arrangers – they’re financial educators who help clients understand:

• Interest rate structures and how they affect long-term costs
• Loan features that might benefit or limit future financial flexibility
• Complex concepts explained in simple, accessible terms
• Long-term implications of different mortgage structures

Your mortgage options in 2025 that you should know about

The current lending environment offers more options than many borrowers realise, particularly as competition intensifies and regulatory changes create new opportunities. Understanding these options can help you make decisions that align with your financial goals.

Variable vs fixed rate thoughts

Variable rate loans currently offer:

• Flexibility to benefit from future rate cuts
• More features like offset accounts and unlimited additional repayments
• Potential for decreasing repayments as economists forecast additional rate reductions

Fixed rate loans provide:

• Certainty and protection against potential rate increases
• Rates currently marginally more competitive than most variable rates
• Protection from market volatility during uncertain times

Split loans offer a compromise, allowing you to fix part of your loan for certainty while keeping part variable for flexibility.

Refinancing opportunities in today’s market

Beyond simply chasing a lower rate, refinancing can help you:

• Access equity for renovations or investments
• Consolidate debts into your mortgage
• Switch to a loan with better features
• Maintain your current payoff timeline while securing better rates

Important note: Refinancing doesn’t automatically mean starting with a new 30-year term – you can often maintain your current timeline while securing better rates or features.

Timing your fixed-rate transition

For those rolling off fixed rates, the timing presents both urgency and opportunity. Rather than automatically accepting your lender’s standard variable rate, this transition period is an ideal time to review all your options.

Many borrowers discover they can maintain similar repayments to their previous fixed rate by refinancing to a competitive variable rate.

Emerging opportunities to watch

Regional markets: First-home buyers and investors are looking beyond capital cities for affordability, with some areas offering specific grants or concessions.

Specialised lending: Products designed for self-employed borrowers, investors, and those with unique circumstances continue to expand.

Niche products: Professional brokers can access products that might not be available through traditional bank channels.

Making informed mortgage decisions in 2025

The mortgage landscape in 2025 presents both opportunities and challenges that require careful navigation. What those 8 out of 10 satisfied borrowers understand is that professional guidance helps them cut through complexity to find solutions that genuinely meet their needs.

The trust factor that drives success

Trust has become a critical factor in consumer decision-making, with 39% of borrowers expressing “complete trust” in their broker compared to just 20% for bank employees. The trust statistics surrounding mortgage brokers reflect more than just good service – they represent genuine value delivery in an increasingly complex marketplace.

With record market share, strong regulatory protection through the Best Interests Duty, and access to competitive products across multiple lenders, brokers have become the preferred choice for most Australian borrowers.

Why current market conditions matter

Current market conditions, including fixed-rate rollovers affecting the majority of borrowers and interest rate cuts creating new opportunities, make this an important time to understand your options.

Whether you’re:

• A first-home buyer navigating government schemes and deposit requirements
• An existing borrower thinking about refinancing opportunities
• Someone rolling off a fixed rate facing repayment increases

Professional guidance can help identify opportunities you might otherwise miss.

Bridging the knowledge gap pays dividends

The knowledge gap that affects 40% of consumers – not understanding what brokers do or incorrectly believing they charge fees – can be costly in terms of missed opportunities and suboptimal loan choices.

Armed with better information about how broking services work and what options are available, you can make decisions with the same confidence as those 8 out of 10 borrowers who trust their mortgage broker.

Further questions

This is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.