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Mortgage brokers are writing a record share of new bank loans, with both regulator and industry data confirming the continued strength of the third-party channel.
New figures from the Australian Prudential Regulation Authority’s (APRA) Quarterly ADI Property Exposure Statistics, released on Thursday (11 September), have revealed that the third-party channel is originating the vast majority of home loans for banks.
In the June 2025 quarter, new term loans from the banks totalled $187.1 billion, with $118.97 billion going to owner-occupiers and $63.78 billion to investors, according to APRA’s latest Quarterly ADI Property Exposure Statistics released on Thursday (11 September). Owner-occupied loans made up 63.6 per cent of all new term loans, while investment loans accounted for 34.1 per cent.
Of these, $118.7 billion of owner-occupied loans and $68.0 billion of investment loans were originated via third parties, such as mortgage brokers, meaning that 63.4 per cent of all new term loans were third-party originated – the highest share on record, up from 62.7 per cent in each of the previous two quarters.
The rise came as authorised deposit-taking institutions (ADIs) funded $187.6 billion in new loans in the June quarter, a 16.2 per cent increase from $161.5 billion a year earlier.
High LVR loans (at 80 per cent or over) fell to 30.4 per cent, a decrease of 1.47 percentage points, and high debt-to-income loans (six times income) edged up to 5.5 per cent, from 5.0 per cent.
At the broader portfolio level, total residential mortgage credit outstanding from the banks increased 5.7 per cent year on year to just under $2.4 trillion.
Owner-occupier loans represented 67.5 per cent of total mortgage credit, down 25 basis points from June 2024, while investment loans accounted for 30.5 per cent, up 22 bps over the same period.
The APRA data aligns with industry figures that show broker market share continues to grow. The most recent broker market share results published by the Mortgage & Finance Association of Australia (MFAA) showed that brokers wrote 76.8 per cent of all new home loans in the March 2025 quarter, the highest level on record.
This was up from 76.0 per cent in the December 2024 quarter and 74.6 per cent in September 2024.
In value terms, brokers settled $99.37 billion in new residential lending in the March quarter, up nearly 22 per cent year on year, according to the MFAA.
The rising broker market share has coincided with a growing number of new entrants to the profession. Both the MFAA and the Finance Brokers Association of Australia (FBAA) reported record membership figures in the financial year 2025, reflecting strong demand for careers in mortgage and finance broking.
Almost 1,200 new-to-industry brokers joined the MFAA in FY25, up more than 9 per cent on the prior year, while the FBAA welcomed 2,381 new members, nearly half of whom were new to the sector, hitting a new record.
Similar trends are being seen in commercial finance. The Commercial & Asset Finance Brokers Association of Australia (CAFBA), which typically requires two years’ experience for membership, also added nearly 300 members over the year, including around 60 provisional members.
Industry analysis shows that the combination of growing broker numbers, consumer trust, and regulatory protections is driving a structural shift in the way Australians access home loans.
Brokers are increasingly becoming the preferred point of contact for borrowers, contributing to record market share and sustained growth in residential lending volumes.
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