ISCOVER
Mortgage approvals at the aggregation and brokerage group rose to $4.62 billion in June 2025, the second-highest figure on record.
New data from aggregation and brokerage group Loan Market Group (LMG) has revealed that mortgage approvals for loans submitted by its 6,000-strong broker network hit a near-record high at the end of the financial year 2025.
According to new data from the LMG National Mortgage Report, the volume of home loan approvals (excluding refinances) rose 5 per cent over the month to June 2025 and 21.1 per cent year on year.
The seasonally adjusted figures showed that a total of $4.62 billion in loans were approved by the group’s brokers in June, second only to July 2024, when approvals were around $4.8 billion.
As is typically the case, the vast majority of loans were for borrowers who were ‘upgrading’ from an existing owner-occupied property to another (53 per cent of all approvals), followed by investors (34 per cent) and first home buyers (13 per cent).
While the report suggested that a number of factors may have contributed to the spike in mortgage approvals at the end of financial year, the group noted that first home buyer (FHB) activity was leading the charge, with approvals for FHBs growing 35 per cent between May and June 2025 (compared to a 1.5 per cent increase in upgrader approvals and a 1.2 per cent increase in investor approvals over the month).
In fact, the LMG National Mortgage Report showed that first home buyer approvals were the highest since the group started tracking this data (in 2022), while the proportion of upgrader approvals had steadily reduced.
Victoria led the nation in first home buyer (FHB) activity, representing 39 per cent of all FHB applications and making up 18 per cent of all applications in the state.
Queensland accounted for 21 per cent of FHB applications and a 13 per cent share of its own market, and NSW was underweight with an 18 per cent national share and an 8 per cent share of total applications for the state.
The report stated that contributing factors for the spike in June approvals may have included the ‘post-election bounce’ (with several of the Albanese government’s election promises focusing on first home buyers) and falling interest rates (following the central bank’s decision to cut rates in May 2025.
The June bounce followed ‘weaker’ approvals for April and May, meaning the June quarter ending with approvals actually was down 2.5 per cent quarter on quarter.
Borrowers holding strong on repayments
The report also found that borrowers are typically choosing to hold repayments steady rather than reduce them.
Despite the rate-easing cycle, only one in 10 variable-rate customers had lowered their repayments following rate cuts, instead choosing to maintain repayments at their existing level (effectively using the lower interest rates to pay down their loans faster).
“Most borrowers aren’t easing off, they’re doubling down,” said Ewen Stafford, executive director and CEO of LMG.
“They’re using this breathing room to get ahead, not spend more. That tells us a lot about where Australians are at, cautious, considered, building buffers, accelerating the paydown of their loan, and setting themselves up. That’s a smart move, and brokers can play a big role in making sure it counts.”
Stafford said the behaviour signals a shift in borrower mindset and a strategic opening for brokers.
“That creates a very real moment for brokers to step in and offer guidance. Clients who are paying more than the minimum monthly repayments may not realise how much room they have to move, whether it’s repricing, restructuring, or unlocking equity,” Stafford said.
“Unless repayment behaviour shifts, we’re unlikely to see a major lift in lending volumes.
“But the real story here isn’t volume, it’s mindset. Borrowers are thinking differently. And brokers can help them think even smarter.”
LMG expects this shift to drive deeper product conversations in the months ahead, with borrowers looking beyond rates, focusing on structure, flexibility and long-term strategy.
“For brokers, this is a moment for brokers to lean in,” Stafford said.
“Clients who are quietly paying more than they need to may have more options than they realise – to save, to restructure, or to plan for what’s next.
“This isn’t just a blip, it’s a change in how people are thinking about debt. They’re more focused on control, not just cheap rates. Brokers have a chance to lead those conversations.”
[Related: Mortgage repayments peaked in February]
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