Nearly all brokers have helped clients refinance and secure a discount on their loan, according to the MFAA.
Brokers have reported that more borrowers are able to refinance, signalling that serviceability pressures that kept clients in “mortgage prison” have eased substantially, according to the Mortgage and Finance Association of Australia (MFAA).
The industry body’s August 2025 Member Sentiment survey found that of the 333 brokers that responded, 99 per cent helped their clients refinance to a new lender in the last six months, 2 per cent more than in the February 2025 survey.
Similarly, 99 per cent said they had helped their clients secure a discount, up 1 per cent on the last survey.
A further 92 per cent of respondents said they had clients using a broker to refinance for the first time.
Brokers have reported that more borrowers are able to refinance as easing interest rates and inflation have helped lower barriers to refinancing.
Generally, borrowers are also seeming to feel more positive - with 34.2 per cent of brokers saying their clients were feeling positive (up 1.5 per cent on the February survey), with nearly 47 per cent believing their clients are 'neutral'. s
Serviceability pressures that kept clients in “mortgage prison” have eased substantially, brokers have suggested, but more are also helping clients understand hardship options.
The survey found that 80 per cent of mortgage brokers helped their clients understand hardship options, up 12 per cent on February's figures.
“Brokers are reporting far fewer clients are unable to refinance due to serviceability requirements than in any of our previous surveys,” MFAA CEO Anja Pannek said.
“The situation has improved over the past two years. Even since February 2025, the number of clients brokers have helped refinance has doubled.
“Improved economic conditions mean refinancing to a more affordable home loan could be an achievable option today. The survey shows that 92 per cent of brokers have clients who are using a broker for the first time to refinance.”
Job security concerns rise
Ahead of the Reserve Bank of Australia (RBA) board meeting later this month, there’s a growing sense of optimism from borrowers about meeting their loan repayments and their overall financial situation, MFAA research found.
However, the August survey highlights for the first time that a cohort of broker clients is also concerned about their employment prospects and housing supply.
Those with a negative view about job security have risen from 4.8 per cent in February to 18.3 per cent in August.
The factor is the second-highest driver of negative outlook. Cost of living remains the top reason, with housing supply in third.
For clients with a neutral outlook, the cost of living is now the biggest driver (up from second), followed by housing supply (up from third). Interest rates have fallen to third spot (previously first).
Pannek said uncertainty over the global economy and concerns about the impact of AI could be leading to anxiety about job security, while the continuing shortfall in housing supply had also affected borrowers.
“While we recognise that most borrowers have a more optimistic view of their financial situation, we also acknowledge that some mortgage holders are struggling, due to cost-of-living pressures and job uncertainty,” Pannek said.
“They are looking to mortgage brokers for support and to help them understand their options.”
[Related: Brokers expect refinancing activity to surge]
