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Brokers are still better trusted compared to the proprietary lending channel, a major new consumer report has found.
The mortgage broking channel has maintained a strong trust advantage over lender personnel, according to new research released by the Finance Brokers Association of Australasia (FBAA).
The FBAA’s Consumer Access to Mortgages 2025 report, conducted in partnership with market researcher Agile Market Intelligence, found that 82 per cent of clients expressed trust in their mortgage broker, including 39 per cent who said they “completely trust” them.
Trust levels were lower among consumers who interacted with the proprietary channel, with 67 per cent of respondents expressing trust in their lender representatives.
The report, which surveyed 1,342 respondents including current, past, and prospective mortgage holders between 25 March and 17 April 2025, also found that 43 per cent of future first-time borrowers plan to use a mortgage broker for support.
Despite brokers enjoying superior levels of trust among borrowers, customer satisfaction across both broker and proprietary channels for borrowers who secured their mortgage in the last 12 months was similar.
Over three-quarters (79 per cent) of borrowers said they were ‘extremely’ or ‘very satisfied’ with the mortgage broking channel, consistent with the proprietary channel’s 76 per cent.
However, the mortgage broking channel saw a higher rate of ‘extremely satisfied’ clients, with 25 per cent compared to 15 per cent for the proprietary channel.
The research also said that broker loyalty has softened, particularly among younger or first-time borrowers, many of whom are drawn to online banking channels for their simplicity and speed.
Best interests duty can boost broker use
Broker market share has continued to increase in recent years, rising almost 25 percentage points over the past five years, with brokers writing a record 76.8 per cent of all new home loans in the March quarter, according to industry figures.
The shift towards broker use may be partly driven by greater consumer awareness of regulatory protections like the best interests duty (BID), which legally obliges brokers to prioritise their clients’ needs.
In fact, the FBAA research found 28 per cent of borrowers were more likely to use a broker after learning about BID.
Consumer awareness of BID was split, though, with just 51 per cent reporting they were previously aware of BID before taking the survey. However, after learning about BID, one-third of respondents answered they were likely to use a mortgage broker.
“Knowledge of the BID remains inconsistent, yet when informed, it boosts confidence in brokers for a significant share of the market,” FBAA managing director Peter White said.
Financial pressures persist
The FBAA research also highlighted an enduring economic strain on many consumers, with 42 per cent saying that their financial situation worsened in the last 12 months, including 11 per cent who believed it was ‘significantly worse’.
Mortgage pressures also remain a major concern for many. More than one-third (34 per cent) of Australian mortgage holders may be experiencing mortgage stress due to their mortgage repayments being greater than 30 per cent of their household income.
Commenting on the research, White said: “This year’s report reinforces the value of mortgage brokers in delivering confidence, clarity and competition.
“Brokers continue to be highly trusted, particularly by those seeking more personalised support or navigating complex financial arrangements. But the report also signals a need for greater education – around the role brokers play, how they are remunerated, and the protection offered by the Best Interests Duty.”
Reflecting on high levels of financial pressure, he said: “Mortgage stress affects one in three borrowers, and refinancing intent is rising – creating an opportunity for brokers to reassert their value as strategic advisers.”
Household financial stress and housing affordability remain a significant issue in Australia, as recent National Australia Bank (NAB) research showed that more than one in three viewed money as a very significant source of stress in their lives.
[Related: Industry pushes back as banks eye bigger mortgage market slice]
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