Broker Market Share Hits 81%: What It Means for Borrowers
ADS Team
Author
August 27, 2026
14 days ago
88
views
In short: Brokers wrote 81.0% of new residential loans in the March 2026 quarter - a record. The shift reflects how much lender policy now varies: with borrowing capacity differing by $200,000 between lenders on identical inputs, knowing which lender to approach has become more valuable than negotiating rate.
Key takeaways
- Brokers now write more than three quarters of new residential loans.
- A best interests duty legally requires them to act in your interests.
- They are paid by the lender, typically upfront plus trail.
- Their main value is policy knowledge, not rate discounts.
Why the share keeps rising
- Policy complexity. Lender assessment differences now materially change what you can borrow.
- Panel access. A broker can compare dozens of lenders; a branch offers one.
- Best interests duty, which applies to brokers and not to bank staff.
- Time - one application process rather than several.
How they are paid
Lenders pay an upfront commission at settlement and a trail commission over the life of the loan. You do not pay directly in most residential transactions.
Commission is broadly standardised across lenders to reduce the incentive to steer you, and clawback provisions mean a broker repays commission if the loan is refinanced quickly.
Getting value from one
- Ask how many lenders are on their panel and how many they recommended.
- Ask specifically why this lender, in policy terms.
- Ask what your borrowing capacity is with two or three alternatives.
- Ask them to disclose commission - they must if you ask.
Frequently asked questions
Does a broker cost me anything?
For most residential loans, no - the lender pays. Some brokers charge fees for complex commercial or specialist work, which must be disclosed up front.
What is the best interests duty?
A legal obligation, in force since 2021, requiring mortgage brokers to act in the consumer's best interests and prioritise those interests over their own. Bank staff are not subject to it.
Will a broker get me a better rate?
Sometimes, through volume discounts. The larger value is usually getting approved at all, or borrowing more, by matching you to the right lender policy.
Related reading
- Why Borrowing Power Varies $200,000 Between Lenders
- Big Four vs Regional Banks vs Neobanks vs Non-Banks
- SEO for Mortgage Brokers: Suburb Pages That Actually Rank
Sources
- Industry Intelligence Service report — MFAA
- Regulatory Guide 273: Best interests duty — ASIC
Information current as at 2 September 2026.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
Related Posts
What "Data Dependent" Really Means
"Data dependent" means the RBA is not pre-committing to a path and will decide meeting by meeting on incoming data. "Higher for longer" signals that rates are expected to stay restrictive for an ex...
Cash Rate History: Where 4.35% Really Sits
A 4.35% cash rate is high relative to the 2010s and low relative to the 1990s. The decade of near-zero rates from 2011 to 2021 was the historical outlier, not the norm - which matters because a gen...
What a 50bp Hike Does to a $750,000 Loan
On a $750,000 loan over 30 years, moving from 6.00% to 6.50% raises the monthly repayment by roughly $244 - about $2,928 a year. The rule of thumb is approximately $32 per month for every $100,000...
Need Financial Assistance?
Connect with our network of trusted finance providers to find the right loan solution for your needs.