Increased reliance on brokers driven by market shifts, technology, and borrower confidence
Mortgage brokers are again expected to play a critical role in Australian lending next year, with eight in 10 borrowers anticipated to seek their expertise.
A new whitepaper from LMG, titled “2025 Trends to Watch,” outlines emerging trends, including increased reliance on brokers, rising buyer confidence, advancements in AI, and growth opportunities in commercial lending. LMG executive chairman Sam White (pictured above left) said 2025 is shaping up to be a pivotal year for brokers.
“Australians are increasingly turning to brokers for expert advice and guidance in a complex lending environment,” White said. “While we are pleased to see brokers becoming the go-to choice for borrowers, we can’t rest on our laurels. Our whitepaper provides brokers with the insights they need to not just keep up but lead the way.”
The LMG whitepaper forecasts brokers will surpass their current 74% market share of residential loans as Australians increasingly turn to trusted advisers for lending solutions.
Wage increases and a strong employment market are lifting buyer confidence. However, affordability challenges remain, with brokers playing a critical role in helping borrowers overcome these hurdles.
Tech-savvy brokers are expected to adopt artificial intelligence (AI) and automation to improve efficiency and deliver tailored advice, driving business growth in 2025. Anticipated interest rate cuts in late 2025 will offer relief for borrowers, with brokers helping clients capitalise on changing market conditions.
Innovative non-bank lenders and investment funds are gaining traction, opening new opportunities for brokers to support commercial clients. With cyber threats becoming more sophisticated, brokers will need to prioritise cybersecurity. LMG said it is investing in advanced tools to ensure secure transactions and protect client data.
Educating clients on financial concepts is becoming a necessity. Brokers who focus on improving financial literacy will foster trust and build long-term relationships.
David McQueen (pictured above right), chief executive of Loan Market, said brokers are entering 2025 in a position of unprecedented strength.
“With more Australians than ever relying on brokers for lending solutions, it’s clear our industry is no longer just a convenient option – it’s the trusted path to better outcomes,” McQueen said. “This growing reliance is a testament to the value brokers bring in navigating complexity and delivering tailored advice. But with opportunity comes responsibility. In 2025, brokers must not only stay informed but stay ahead.”
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