Thinking of Buying a Mortgage Broker Business in Australia? Here Are 3 Vital Questions to Ask
Australia’s mortgage broking industry generated $6.2 billion in revenue in 2025, with profits of $680 million and a healthy 11% profit margin, employing more than 22,000 people across 11,500 enterprises.
The sector has expanded strongly, growing 10.6% annually over the past five years, fuelled by housing market resilience, record loan values, and consumer reliance on brokers. Mortgage brokers now arrange over 74% of all residential home loans, a record high share in 2024. Industry revenue is forecast to grow 3% annually through 2031, reaching $7.3 billion, driven by lower interest rates, housing affordability reforms, and steady refinancing demand.
1. Is the Business Financially Sustainable Amid Housing Market Volatility?
Why It Matters:
Mortgage brokers are directly tied to property lending conditions. Revenue depends on loan volumes, housing prices, and borrower confidence — all of which are influenced by interest rate movements and government housing policy.
What to Check:
-
Revenue base – The sector earned $6.2 billion in 2025 and is projected to reach $7.3 billion by 2030, reflecting moderate but stable growth.
-
Profit margins – Margins average 11%, supported by strong loan values and commissions on both new loans and refinancing.
-
Loan demand – Government programs like the Help to Buy Scheme and Housing Australia Future Fund are boosting loan activity among first-home buyers and low-income households.
-
Interest rates – The RBA’s February 2025 rate cut has reignited loan demand, with further easing expected to stimulate refinancing and property purchases.
-
Revenue resilience – Despite volatility, the industry’s size has tripled since 2015, showing strong long-term resilience.
2. Does the Business Have a Strong Market Position and Lender Network?
Why It Matters:
The sector is highly competitive but dominated by several large networks and aggregators. Market share, reputation, and lender relationships directly affect commissions and client acquisition.
What to Check:
-
Market leaders – Top firms include Australian Finance Group (12.5%), Loan Market (6.1%), Lendi (5.7%), and REA Group (1.3%), with the rest spread across thousands of small brokers.
-
Industry structure – Over 74% of the market is held by independent or small-scale operators. Many succeed by offering personalised service and leveraging strong referral networks.
-
Franchise and aggregator models – Franchised brokers enjoy brand visibility and access to established lender panels, while independents retain flexibility but face higher marketing costs.
-
Customer trends – Rising complexity in lending and tighter regulations have made broker expertise more valuable; refinancing and investment loans now drive nearly 60% of brokered volume.
-
Geographic concentration – NSW, Victoria, and Queensland dominate due to housing density and higher loan values. These three states account for the bulk of broker settlements.
3. Is the Business Aligned with Regulatory and Technological Change?
Why It Matters:
Reforms from the Financial Services Royal Commission and emerging technology are reshaping the mortgage broking landscape. Compliance, digital tools, and consumer trust will define the next phase of growth.
What to Check:
-
Regulatory compliance – Brokers must hold or operate under an ASIC Australian Credit Licence in accordance with the National Consumer Credit Protection Act 2009, ensuring responsible lending practices.
-
Royal Commission reforms – The Financial Sector Reform Act 2020 introduced a duty for brokers to act in clients’ best interests and shifted remuneration away from volume-based incentives.
-
Digital integration – Automation and predictive analytics now enhance loan processing, with platforms like AFG’s BrokerEngine Plus cutting approval times by up to 90 minutes per transaction.
-
Competition from fintech – Online aggregators such as Unloan and digital banks are intensifying competition, pushing traditional brokers to highlight personalised service and human expertise.
-
Data-driven strategy – Brokers leveraging CRM systems, rate comparison software, and predictive models for client behaviour gain a competitive edge in lead conversion and compliance accuracy.
Ready to Invest in a Thriving Mortgage Broker Business?
With housing policy support, digital transformation, and sustained consumer reliance, mortgage broking remains one of Australia’s most profitable professional services sectors.
Success depends on maintaining compliance, nurturing lender partnerships, and adopting digital and analytical tools that deliver faster, smarter lending outcomes for clients.
For Buyers:
Create an account to set up alerts here.
For Sellers:
Sell Your Business here.
