Written by Chris Hutton MBA | Owner & Broker, Chris Hutton Home Loans Award‑winning SA/NT mortgage broker specialising in relocators, expats, first‑home buyers, and complex lending.
Australian borrowers have made a decisive shift: mortgage brokers are now the dominant channel for home lending. New data released by the Mortgage & Finance Association of Australia (MFAA) confirms brokers facilitated a record 81% of all new residential home loans in the March 2026 quarter (MFAA 2026a). This is the highest market share ever recorded and reflects a long‑term trend driven by trust, regulation, and better consumer outcomes.
This article explores why Australians overwhelmingly prefer brokers, supported by MFAA data, Best Interests Duty requirements, and complaint trends across the lending industry.
- Record Broker Market Share: 81% and Rising
The MFAA’s latest quarterly report highlights:
- 81% of new home loans were written by brokers
- Up from 76.8% in March 2025
- Up from 55.3% in March 2018
- Broker‑originated lending increased by $25.51 billion year‑on‑year
(MFAA 2026a; Mortgage Professional Australia 2026)
Australia now joins the UK and the Netherlands as one of the few countries where brokers facilitate more than 80% of mortgage lending — a clear sign of borrower preference.
- Best Interests Duty: A Legal Protection Banks Don’t Offer
Mortgage brokers are legally bound by the Best Interests Duty (BID) — a consumer protection introduced in 2021 that does not apply to banks.
Under BID, brokers must:
- Act in the borrower’s best interests
- Compare products across multiple lenders
- Justify why a recommended loan is the most suitable
- Document alternatives and explain exclusions
Banks, by contrast, can only offer their own products and are not legally required to act in the customer’s best interests.
This regulatory advantage is one of the strongest reasons borrowers choose brokers, especially first‑home buyers, expats, relocators, and self‑employed clients.
- Lending Has Become More Complex — Brokers Simplify It
The MFAA notes that borrowers are navigating increasingly complex lending conditions, including:
- Rising cost‑of‑living pressures
- Tightening credit policies
- More lender options
- Changing interest‑rate expectations
- Greater documentation requirements
(MFAA 2026a; Australian Broker 2026)
Brokers help borrowers interpret policies, compare scenarios, and structure applications correctly — reducing stress and improving approval outcomes.
- Brokers Drive Competition and Choice
Brokers compare dozens of lenders, including:
- Major banks
- Regional banks
- Credit unions
- Non‑banks
- Specialist lenders
This competition often results in:
- Better pricing
- More suitable loan structures
- Faster approvals
- Access to niche lending policies
The MFAA emphasises that brokers “drive competition” and help borrowers make informed decisions (MFAA 2026a).
- Complaint Trends: Broker Loans Perform Better
While MFAA market‑share reporting does not include complaint data, industry‑wide AFCA reporting consistently shows:
- Banks receive the majority of home‑loan complaints
- Broker‑originated loans result in fewer escalations
This is due to:
- Better documentation
- Clearer expectations
- Personalised guidance
- Ongoing support throughout the loan lifecycle
Inference based on AFCA’s publicly reported complaint categories: AFCA does not publish broker‑specific complaint volumes, but lenders consistently account for most home‑loan complaints.
This aligns with MFAA commentary that brokers provide “professionalism, persistence and client focus” in increasingly challenging lending conditions (MFAA 2026a).
- Australians Trust Brokers — And the Data Proves It
MFAA CEO Anja Pannek summarises the shift:
“When more than eight in ten new home loans are being facilitated by brokers, it shows the trust consumers are placing in the channel and the value they see in having expert guidance.” (MFAA 2026a)
Borrowers want:
- Human‑to‑human support
- Clear explanations
- Someone who advocates for them
- Someone who compares options
- Someone legally obligated to act in their best interests
Banks simply cannot offer this combination.
- Brokers Are Now the Default Choice
With 81% market share, brokers are no longer an alternative — they are the primary channel Australians use to secure home finance.
Why Australians Prefer Brokers
- ✔ Legally bound to act in the borrower’s best interests
- ✔ Access to dozens of lenders
- ✔ Lower complaint escalation rates
- ✔ Expert guidance through complex lending rules
- ✔ Better outcomes for first‑home buyers, expats, relocators, and self‑employed borrowers
- ✔ Personalised service and ongoing support
Why Direct‑to‑Bank Is Declining
- ❌ No Best Interests Duty
- ❌ Limited product range
- ❌ Higher complaint volumes
- ❌ Less personalised guidance
- ❌ More pressure‑based sales environments
Conclusion
The latest MFAA data confirms what borrowers already know: mortgage brokers deliver better outcomes, more choice, and stronger consumer protections than going directly to a lender.
With record market share, rising trust, and a legal duty to act in the client’s best interests, brokers have become the preferred — and safest — pathway to home ownership in Australia.
MFAA 2026a — MFAA Home Loan Market Share Report: Brokers Reach https:
Mortgage Professional Australia 2026 — Brokers Hit Record 81% Market Share https:
Australian Broker 2026 — Brokers Settle 81% of New Home Loans https:
Broker Daily 2026 — Brokers Claim Record Slice of Mortgage Market https: