Recent data indicates that brokers are consolidating their position as the primary choice for borrowers across Australia, with market share currently at 74.6 per cent. According to the latest report released by Loan Market Group (LMG), this figure is expected to rise substantially, with eight out of ten borrowers anticipated to seek out brokers within the year. LMG describes 2025 as potentially “the year of the broker,” highlighting significant trends that are set to reshape the industry.
Speaking to Mortgage Business, LMG’s executive chairman Sam White remarked, "Australians are increasingly turning to brokers for expert advice and guidance in a complex lending environment." As the largest aggregator in the country, LMG is uniquely positioned to observe this growing trend towards brokerage services. White noted that while the awareness of brokers continues to expand, the industry must maintain momentum and adapt to the evolving market.
The "2025 Trends to Watch" report outlines seven key trends influencing the broking sector this year. The first trend suggests that brokers will solidify their reputation as the go-to option for lending solutions, as borrowers increasingly seek trusted advisers in navigating the complexities of the lending landscape. Enhanced buyer confidence is also noted, driven by wage growth and easing inflation; however, affordability challenges remain prevalent, underscoring the vital role of brokers in helping clients address these issues.
A significant trend detailed in the report is the incorporation of artificial intelligence (AI) in broking practices. LMG emphasizes that tech-savvy brokers will be able to streamline processes and offer sharper, more personalized advice by leveraging AI and automation. This technological adoption is seen as a means to stimulate growth within the brokerage sector.
Market predictions also suggest that interest rate cuts may be on the horizon for late 2025, which could provide relief to borrowers. Brokers are expected to play a crucial role in guiding clients through these transitions, maximizing the benefits of any shifts in the economic landscape.
The report further highlights emerging opportunities in commercial lending as non-bank lenders and innovative investment funds gain traction. This presents brokers with new avenues to assist commercial clients effectively.
In light of rising cyber threats, the significance of cybersecurity is underscored. LMG is devoted to investing in advanced tools to ensure secure transactions and the privacy of client data, an essential focus in today's digital economy.
Lastly, the importance of financial literacy is taking centre stage, as educating clients is increasingly seen as essential for brokers. This initiative not only enhances trust but also fosters long-lasting relationships, further solidifying brokers' roles in the lending market.
Loan Market CEO David McQueen stated, "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." This shift illustrates the evolving responsibilities of brokers in adapting to technological advancements, educating clients, and responding to market dynamics to maintain their competitive edge in the near future.
Source: Noah Wire Services