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The proportion of home loan borrowers who would use a broker for their next loan has shrunk, according to a new consumer report.
The share of home loan borrowers who would use the third-party channel has fallen in recent years, according to a new report 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 only 34 per cent of existing mortgagors would speak directly with a broker in the future, down from 41 per cent in 2023 (the most recent version of this report).
Notably, the research also found a 10 per cent drop in the proportion of broker clients who said they would use a broker again, down from 68 per cent in 2023 to 58 per cent this year.
The report, which surveyed 1,342 respondents including current, past, and prospective mortgage holders between 25 March and 17 April 2025, also found that just 9 per cent of borrowers who applied through a branch for their last mortgage planned to use a broker for their next mortgage, down from 15 per cent in 2023.
The trend was the same for those who applied for a home loan online, with just 11 per cent saying they would use a broker for their next mortgage, dropping from 21 per cent two years prior.
Research also found that broker loyalty has softened, particularly among first-time buyers, many of whom were drawn to online banking channels for their simplicity and speed.
Almost three-quarters (70 per cent) of mortgage broker clients said they would return to a broker for assistance with their next mortgage application, down from 80 per cent in 2023.
Meanwhile, loyalty among proprietary channel customers increased, rising from 75 per cent in 2023 to 78 per cent this year.
New entrants to the mortgage market were also found to be less likely to seek the help of brokers.
In 2025, 28 per cent of first-time buyers said they would speak directly with a broker to begin the process of taking out a mortgage, 5 per cent lower than the same figure in 2023, indicating that more first-time buyers are open to buying property without the use of a broker.
Overall, the preference among those seeking their first mortgage to use a broker inched down from 44 per cent to 43 per cent.
However, of those who had used a broker, satisfaction levels were climbing. Borrowers who secured a home loan through brokers had a 79 per cent satisfaction level, up from 75 per cent in 2023, and higher than the 76 per cent satisfaction level from proprietary borrowers.
Brokers may be misunderstood
However, the Consumer Access to Mortgages 2025 report also found that only a third (34 per cent) of consumers consider themselves either “very familiar” (25 per cent) or “extremely familiar” (9 per cent) with mortgage broker services.
In contrast, 20 per cent said they are only “somewhat familiar” and a similar proportion (19 per cent) said they were “not familiar at all” with the services brokers offer. This means nearly two in five consumers (39 per cent) have limited awareness of what brokers do.
The report found that familiarity was strongest among active mortgage holders, who are more likely to report a higher level of understanding. However, awareness is much lower among previous and non-mortgage holders, highlighting a gap in broader consumer knowledge.
There was also a lack of consensus on whether the cost of mortgage broker services is too expensive. The study underscored consumers’ uncertainty around how brokers are paid for their services.
“As broker adoption grows, closing this awareness gap will be crucial. Clearer communication about broker services can help more consumers make confident, well-informed decisions about their mortgage options,” the report said.
However, the research also highlighted that 82 per cent of clients expressed trust in their mortgage broker, more than the 67 per cent of respondents expressing trust in their lender representatives from the proprietary channel.
Commenting on the research, FBAA managing director Peter White said: “Importantly, the findings highlight that trust must be earned continuously.
“While brokers remain the preferred channel for many, shifting economic conditions and digital disruption are reshaping how borrowers think about their next home loan.
“Our industry must stay agile, focused, and committed to meeting these evolving expectations.”
[Related: Borrowers trust brokers more than proprietary channel: FBAA]
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