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Australia’s mortgage broking industry is experiencing a profound shift, with surging market share driving a move from solo operators to structured, specialised, and tech-supported professional services firms, says Nick Young from Trail Homes.
The mortgage broking industry in Australia is riding high. With brokers now writing around 76 per cent of all residential home loans – a figure that was closer to 43 per cent just over a decade ago – the channel has firmly entrenched itself as the dominant force in the distribution of residential mortgages.
But as broker market share surges, their structure is undergoing a quieter, more profound transformation. The traditional image of a sole operator working from a home office, juggling client meetings, paperwork, compliance, and marketing, is rapidly becoming obsolete.
Instead, the ‘new generation’ broking firm is operating as a professional services business: structured, specialised, and increasingly supported by tech and teams.
That shift is being driven by both opportunity and necessity.
We recently hosted an industry roundtable, with Rob Thomas at Loan Market Group, Sean Reid at Money Quest Group, and Jaime Savory from Gippsland Finance, to discuss the rapidly evolving mortgage broking sector.
From the lens of a larger aggregator, a rapidly growing boutique aggregator group, a brokerage, and my perspective as a long-serving industry veteran, the overriding conclusion was that, without a doubt, the only constant is change.
Regarding broker market share, a clear consensus emerged where it was agreed that broker market share is not only on track to grow, but will likely cross the 80 per cent threshold by the end of the decade.
Some panellists, like regional broker Savory, were even more bullish, predicting 89 per cent share, particularly in regional areas where the exodus of bank branch closures is proving to be a major tailwind. With the major banks shedding physical locations in droves, especially outside metropolitan areas, consumers are increasingly turning to brokers for the personalised, face-to-face advice they can no longer find at their local bank.
Yet, the broker boom isn’t just about scale. It’s also about structure.
While the number of brokers is expected to rise in the coming years, the number of broking firms is forecast to decline. Smaller, one-person shops are being squeezed out – not by competition – but by rising costs, increasing compliance complexity, and shifting consumer expectations.
Compliance obligations such as annual reviews, file audits, and documentation standards have made it harder for a solo broker to do it all. At the same time, today’s borrowers expect instant answers, digital communication, and seamless service – something that’s difficult to provide without back-office support. As Savory candidly put it: “It’s bloody hard to be a one-man show and do right by the client from start to end.”
The result is a wave of consolidation. Larger firms are acquiring books, absorbing retiring brokers, and building scalable business models. These firms often have teams dedicated to specific lending verticals, from residential to commercial and asset finance. They also employ admin staff, client service teams, and marketing managers, allowing brokers to focus on high-value advisory work rather than paperwork and phone tags.
Whether backed by on or offshore teams, digital assistants, or generative CRM systems, this model is not just a natural evolution – it’s a competitive necessity.
Nick Young is a results-driven specialist who has more than 20 years’ experience in the mortgage broking industry and now heads Trail Homes – Australia’s most established and longest-serving trail book purchaser.
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