New data has revealed that borrowers’ reliance on brokers is holding at near record highs as demand tilts further towards residential property.
A fresh investor sentiment survey by the Finance Brokers Association of Australia (FBAA) and research house CoreData, polling 1,007 investors and home owners, has shown that broker use is holding firm at near-peak levels.
Across the sample, 87 per cent of respondents said they had used either a mortgage or finance broker, broadly in line with 2024.
The report said that engagement “remained comparable” between the two channels, yet that the balance was shifting.
Of those who had used a broker in the past three years, 53 per cent said they had engaged a mortgage broker, while 45 per cent turned to a finance broker, reversing last year’s split.
The survey also highlighted subtle yet notable shifts by age, as younger borrowers and first home buyers look to enter the housing market.
The FBAA said broker engagement remained “highest among 30–39s, with a slight decrease for 40–49s”.
Overall use among 18–29-year-olds edged up from 83 to 85 per cent year on year, while the 30–39 cohort held steady at 94 per cent.
Usage dipped from 94 per cent to 88 per cent among 40–49-year-olds and slipped from 82 per cent to 79 per cent among 50–59s.
The findings reinforce that those in their 30s and early 40s remain the peak cohort for broker-engaged borrowing, yet that younger adults were slowly becoming more comfortable seeking intermediary assistance.
Home buying leads as business demand softens
In terms of why borrowers were approaching brokers, the data showed a pivot toward property and away from commercial lending.
The report said that “home purchase remains the main driver, consistent with 2024, followed by investment products”.
Across all broker types, residential real estate as a reason to make contact jumped from 49 per cent to 59 per cent yoy.
Investment products rose more modestly, from 34 per cent to 37 per cent yoy, while self-managed super fund (SMSF) loans climbed from 19 per cent to 23 per cent.
Yet traditional business lines retreated, seen in debtor finance-related inquiries falling from 23 to 15 per cent, corporate loans dropping from 22 per cent to 13 per cent, and business loans easing from 23 to 18 per cent.
This pattern aligns with the broader backdrop of tighter conditions for small business, where rising funding costs have constrained borrowing appetite.
Mortgage clients narrow their focus
The report also drew a clear distinction between mortgage and finance broker client behaviour.
On the housing side, the FBAA said that “mortgage broker use is rising, reflecting a stronger residential and investment focus.”
Mortgage broker use in the past three years increased from 45 per cent to 53 per cent yoy, while finance broker use over the same period fell from 53 per cent to 45 per cent.
Those using mortgage brokers are also becoming more single-minded.
“Mortgage clients increasingly have one clear reason to engage, whereas finance broker clients are coming with broader layered needs,” the survey reads.
For mortgage brokers, the average number of reasons to see a broker (out of 11) fell from 1.9 to 1.8 yoy, suggesting borrowers were increasingly coming in with a single request.
Within that, residential real estate became even more dominant, demonstrated in the share of clients citing it as a reason, jumping from 60 per cent to 73 per cent yoy.
Over the same period, investment products decreased from 27 per cent to 22 per cent, and debtor finance slumped from 13 per cent to 6 per cent.
The way these properties are being used is also shifting, with personal or owner-occupier real estate arranged through brokers increasing from 65 per cent to 68 per cent.
Business use fell from 9 per cent to 6 per cent, and investment use held steady at 25 per cent.
Finance brokers see layered investment and SMSF demand
The picture is more complex on the finance broker side, with the average number of reasons to engage lifting from 2.9 to 3.1 yoy.
Investment and superannuation strategies are doing much of the heavy lifting.
Finance broker clients citing investment products surged from 41 per cent to 55 per cent yoy, while SMSF loans increased from 25 per cent to 35 per cent.
The spike comes against the backdrop of a booming SMSF sector, which is navigating higher interest rates, tighter lending standards, and evolving regulatory scrutiny.
Investor loans move downmarket
A key finding sits on the investment side, with the report noting that “interest in loans for investment products has moved down market, with growth in the $50,000–$300,000 segment and a sharp drop among $2 million–$6 million portfolios.”
For these investment loans, the $50,000–$300,000 category rose from 12 per cent to 22 per cent yoy.
The $300,000–$750,000 band held steady at 18 per cent, while the $750,000 to $2 million band increased from 31 per cent to 33 per cent.
At the top end, the $2 million–$6 million bracket fell from 28 per cent to 13 per cent.
The shift comes amid a broader transition in the market, as wealthier investors with large portfolios lean on alternative channels, including private banking, while higher rates and more volatile asset prices encourage others to reduce their leverage.
Meanwhile, smaller and emerging investors have been increasingly active, looking for guidance on how to build diversified portfolios.
[Related: Borrowers flock to brokers for expertise and access: FBAA]
