Mortgage Brokers Now Arrange 81.6% of Australian Home Loans: Why Are More Australians Using a Broker?

New data released by the Mortgage & Finance Association of Australia (MFAA) shows mortgage brokers facilitated a record 81.6% of all new residential home loans in Australia during the June 2026 quarter.

That means more than four in every five new residential home loans are now being arranged through the mortgage broking channel.

But why are so many Australians choosing to use a mortgage broker rather than going directly to a bank?

For us, the answer isn't simply about finding an interest rate. It's about helping people understand their options, compare lenders, structure their finance properly and have someone guide them through what can otherwise be a pretty confusing process.

Mortgage broker market share reaches a new Australian record

Mortgage broker market share has continued to grow over the past few years.

According to the Cotality data commissioned by the MFAA:

Mortgage brokers also facilitated $139.08 billion in new home lending during the June 2026 quarter, an increase of $17.49 billion compared with the same quarter a year earlier and the highest lending volume recorded for any June quarter.

The longer-term trend is even more noticeable. In June 2018, brokers facilitated 53.9% of Australian residential home lending. By June 2026, that figure had increased to 81.6%.

That's a significant change in the way Australians are choosing to arrange their home loans.

Why are more Australians using mortgage brokers?

There isn't one reason that explains the growth. For many borrowers, it's simply that home lending has become more complicated.

Different lenders can have very different:

• interest rates
• lending policies
• borrowing capacity calculations
• treatment of overtime, bonuses and allowances
• self-employed lending requirements
• deposit requirements
• offset and redraw options
• package fees
• refinancing incentives
• servicing requirements.

The loan that works well for one person may not necessarily be suitable for someone else. That's where having someone help compare the options can be valuable.

ASIC's Moneysmart describes a mortgage broker as someone who works between borrowers and lenders and can help borrowers understand their needs, work out what they may be able to borrow, find suitable options, explain loan costs and features and assist with the application through to settlement.

It's not just about finding the lowest advertised rate

Interest rate matters. Of course it does. But choosing a home loan based purely on the headline rate can sometimes mean overlooking the bigger picture.

For example, one loan might have a slightly lower interest rate but also have:

• an annual package fee
• no offset account
• restrictions on redraw
• a higher establishment cost
• a less suitable lending policy for your circumstances.

Another lender may offer a slightly different rate but provide features that make more sense for how you actually manage your money.

When we compare home loans at Mesh Finance, we look at the overall structure, not simply which lender appears at the top of a rate table.

Mortgage broker vs bank: what's the difference?

Going directly to your bank isn't necessarily a bad option. Your bank can explain and offer you the home loan products that it provides.

A mortgage broker takes a different approach by looking at home loan options from a panel of lenders. That can include major banks, smaller banks and other lenders, depending on the broker's lender panel.

It's worth noting that a mortgage broker won't necessarily have access to every lender or every home loan in Australia. Moneysmart recommends asking your broker which lenders they can access and which they cannot.

The advantage is having someone compare a range of available options based on your circumstances rather than starting with one particular bank.

Mortgage brokers have to act in their clients' best interests

There's another important distinction. Australian mortgage brokers have a legal Best Interests Duty when providing credit assistance.

ASIC says mortgage brokers must act in the consumer's best interests and prioritise the consumer's interests where there is a conflict.

That means recommending a loan isn't simply about finding a lender prepared to say yes. A broker should understand your individual circumstances and be able to explain why the option being recommended is appropriate for you.

Moneysmart suggests borrowers ask questions including:

• Why are you recommending this loan?
• Why is it in my best interests?
• What other options did you consider?
• What fees and features does the loan have?
• How will the broker be paid?
• What lenders can the broker access?

They're good questions. We think clients should understand why we're recommending a particular loan, rather than simply being told which lender to use.

A broker can help when your situation isn't straightforward

This is another area where mortgage brokers can be particularly useful. Not every home loan application fits neatly into a bank's standard boxes.

You might be:

• buying your first home
• refinancing an existing mortgage
• consolidating debts
• self-employed
• returning to work after parental leave
• using overtime, commission or allowances as part of your income
• buying an investment property
• selling and buying at the same time
• considering bridging finance
• wanting to access equity from your home.

Different lenders can treat these situations very differently. Sometimes the job isn't simply finding the cheapest lender. It's finding the lenders whose policies actually fit your circumstances, then comparing the suitable options from there.

Using a mortgage broker doesn't mean handing over every decision

A good mortgage broking process should still leave you in control. Our job is to do the research, explain the options and help make the complicated parts easier to understand. Then you can make an informed decision.

At Mesh Finance, that means we'll talk about things such as:

• how much you may be able to borrow
• what your repayments could look like
• the deposit and funds you'll need
• the interest rate
• loan fees and package costs
• offset versus redraw
• fixed versus variable options where relevant
• the costs involved in refinancing
• why we're recommending one option over another.

Sometimes the best solution is very straightforward. Other times, we might need to compare several different structures before deciding which one makes the most sense.

Do mortgage brokers charge a fee?

Mortgage brokers are generally paid commissions by lenders when they arrange a home loan.

Moneysmart notes that brokers must provide information about the commissions they may receive. Some brokers may also charge clients a fee directly, which should be clearly disclosed before proceeding.

At Mesh Finance, we'll explain any applicable costs as part of the process so you know what you're agreeing to before proceeding.

Does 81.6% mean everyone should use a mortgage broker?

No. The 81.6% figure doesn't mean a mortgage broker is automatically the right choice for every borrower. Some people are perfectly comfortable researching lenders themselves and dealing directly with their chosen bank.

What the figure does show is a significant change in consumer behaviour. Australians are increasingly choosing to have someone help them navigate their home loan options.

And with mortgage broker market share increasing from 73.7% in June 2024 to 81.6% in June 2026, that doesn't appear to be a short-term shift.

What should you look for in a mortgage broker?

If you're considering using a mortgage broker, don't be afraid to ask questions. A few worth covering:

• What lenders can they compare? A broker should explain their lender panel and any limitations on the lenders they can access.
• Why are they recommending a particular loan? You should understand why the recommended lender and product suit your circumstances.
• What is the overall cost? Don't look at the interest rate in isolation. Consider fees, features, refinance costs and how the loan is likely to work for you over time.
• Do they understand your goals? Your home loan should fit what you're actually trying to achieve, whether that's buying your first home, reducing repayments, paying your mortgage down faster, buying an investment property or getting your finances into a better position.

Looking for a mortgage broker in Perth?

At Mesh Finance, we help clients across Perth and WA with home loans, refinancing, first home buyer finance, investment loans, debt consolidation and more.

We don't expect you to know which lender to use before you speak with us. That's our job to investigate.

We'll start by understanding what you're trying to achieve, look at your financial position and compare suitable options from our lender panel. Then we'll explain the numbers in plain English so you can decide what feels right for you.

Whether you're buying, refinancing or simply wondering whether your current home loan is still competitive, we're happy to have the conversation.