Buying a home or refinancing means wading through a financial maze. Rates, fees, terms, conditions. It’s enough to make your brain hurt.
Maybe that’s why 75% of all new residential loans in Australia are now arranged by mortgage brokers – up from just 57% in 2017. That’s an 18 percentage point jump in less than a decade, showing a significant shift in how Australians secure home loans.
These findings come from Deloitte’s “The Value of Mortgage and Finance Broking 2025” report, which examines the growing role of mortgage brokers in Australia’s financial landscape.
But what’s driving this change? Why are more people choosing brokers over the traditional approach of dealing directly with their bank? Let’s break down the seven key reasons behind this massive shift:
1. More options, better choices
When you deal directly with your bank, you see one set of loan products. When you work with a broker, you’re suddenly looking at dozens of possibilities from multiple lenders.
“Most Australians don’t realise they’re viewing the housing market through a keyhole when they only talk to their bank,” says George Rentzepis, Director of Lending at Navigate Advisory.
“A good broker can present borrowers with options they’d never find on their own.”
The Deloitte report found that in 2023-24, mortgage brokers settled loans with an average of 8 different lenders and had access to up to 65 lenders through their aggregator panels. This isn’t just about having more choices – it’s about finding the specific loan features that match your unique situation.
2. Real money saved through better rates
When you’re hunting for a home loan, the difference between a good deal and a great one isn’t spare change – it’s serious money.
The Deloitte research shows brokers help borrowers achieve an average 0.35% reduction in interest rates when successfully repricing their loans. That might not sound like much on paper, but let’s break it down:
On a $600,000 mortgage, that 0.35% equals about $2,100 saved every year.
Over a 30-year loan, you’re looking at $63,000 – enough for a luxury car or a solid chunk of your kids’ education.
This isn’t theoretical. These are real dollars that could be sitting in your pocket instead of your lender’s.
3. First home buyer champions
Buying your first home is complicated enough without adding the stress of figuring out loans on your own.
The data speaks volumes: 45% of brokers’ owner-occupier customers are first home buyers, compared to just 30% in the broader market. That means first-time buyers are significantly more likely to choose broker support.
Brokers help those who need guidance most, leveling a playing field that typically favors experienced players. They can explain complex terms, find grants and assistance programs you might qualify for, and guide you through documentation requirements that might otherwise trip you up.
4. Supporting Australians beyond the cities
Access to financial services isn’t equal across Australia, with regional areas often having fewer banking options than major cities. Mortgage brokers help bridge this gap.
The Deloitte report highlights that 1 in 4 mortgages arranged by brokers are for customers located in regional and rural areas. This figure mirrors the national population distribution (27% in regional and remote areas), showing that brokers serve Australians fairly regardless of location.
For those in smaller communities with limited banking options, brokers provide vital access to a competitive range of products that wouldn’t otherwise be available locally.
5. Financial education that banks don’t provide
One of the most valuable yet overlooked broker benefits is education. In a country where 45% of adults have low financial literacy levels, this guidance makes a critical difference.
The report reveals mortgage brokers spend approximately 11% of their time purely on educating customers about their options and preparing them for applications. They’re translating complex financial jargon into plain language so you can make confident decisions.
Think of it like having a translator in a foreign country. Sure, you could stumble through on your own with a phrase book, but having someone fluent makes everything smoother, faster, and less stressful.
6. Creating competition that benefits everyone
By facilitating competition between lenders, brokers have helped create a more competitive marketplace. Every time a broker helps a client switch to a better rate, it puts pressure on all lenders to sharpen their offerings. You benefit from this competitive pressure even if you never use a broker yourself. It’s a rising tide that’s lifted all boats.
7. Personal guidance through complexity
Perhaps the most overlooked benefit of working with a broker is simply having a knowledgeable ally in your corner who provides personalised service.
Financial decisions can be isolating. Most people don’t openly discuss their mortgage details with friends. Family advice, though well-meaning, is often outdated or specific to very different circumstances.
A broker brings objectivity, experience, and a duty to act in your best interests. They not only help with the initial loan but provide ongoing proactive assessment of mortgage terms, ensuring you continue to receive the best possible deals.
Navigate Advisory Lending Services
Our Lending Specialists George Rentzepis, Marc Ruhoff and Christian Moustakas find you the ideal loan to fit your life now and in the future.
- Buying a home
We’ll find the perfect loan for your perfect place. From start to finish, we’ve got you covered. Move from “just looking” to “welcome home” with our help navigating the home loan maze.
- Buying your business premises
If you’re looking to buy or refinance a commercial office, retail shopfront or warehouse, we step in to find the right loan for you. As mortgage brokers, we sort through the options so you can focus on building your business.
- Investing in property
If you’re an experienced real estate investor or just entering the property investing game, we’ll find the ideal loan and help you tap into equity to finance future purchases.
- Building a new home
We’ll match you with the right construction loan and lender, then guide you through each step. We keep things straightforward so you can focus on the fun stuff like choosing fixtures and colours.
- Refinancing your home loan
Looking to refinance your home loan to get a better rate or additional features. We’ll assess your current loan and financial situation and make refinancing easy for you.
- Borrowing through your SMSF
We understand the intricacies of borrowing to buy a property through your SMSF. We guide you through the process and help you access residential and commercial loans.
Find out more about our Lending services at: navigateadvisory.com.au/loans-finance/
Arrange an introductory chat with one of our lending specialists at: navigateadvisory.com.au/contact/
Navigate Advisory has offices in Balmain, Brighton-Le-Sands and Hurlstone Park.
Source: Deloitte: The Value of Mortgage and Finance Broking 2025.